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Business model like carfax - how to go about it?

KingKKingK subscriber Posts: 5
edited March 2008 in Business Planning
I`ve a business plan and a proto-type built for my idea. It is similar to how car fax works. My business involves talking to different companies and getting the information from their database. Where should I start and what would be the best option?
This is what I`ve thought of.
>Option A: Try to have a strategic partnership which a firm already established. For this I think having a prototype built should suffice to give them a demo. I`m looking for them to assemble a team and build the product, market it and so forth. But I was wondering what would be my involvement as I can easily get shadowed by a big company.
>Option B: Register my company, build a proto-type, have a website, have some good references and approach a client. Get 2 or 3 major clients to sign-up for my program. Once I get the clients signed-up I can approach investors to fund my idea and then take it from there.
Your suggestions are greatly welcome. Thanks a bunch
(I was wondering when carfax started off, how did they convince the companies to share the car records information? Also since the companies are sharing their information, would they be charging carfax?)


  • robertjrobertj subscriber Posts: 0 Member
    Are you revisiting this question since you did the business plan?
    I would also identify all /any intellectual property and decide how you want to handle that.
    Whether you decide on option A or B - I would try to get some customer validation before going much further.
  • KingKKingK subscriber Posts: 5
    Thanks for replying. I had travelling a lot and coudn`t check on here.
    I haven`t covered these options in the business plan. Infact at this time I don`t know what is the right approach. How do I approach the protecting the IP of the clients?
  • robertjrobertj subscriber Posts: 0 Member
    In my previous post, Iwas referring to your company`s IP. However, protecting your customers data will also be an important consideration.
  • infiniqueinfinique subscriber Posts: 0 Member
    I always recommend anybody starting a business to work for a competitor and start your business only when you learn the ropes. How can you be successful when you are clueless. Chances is you will make more mistakes along the way that way.
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