Questions

I've covered my development costs, and I am breaking even after just 40 days of accepting customers, but the growth is tiny and a very small piece of what it could be. With that being said, going after the market at large requires at least a couple more employees, and some PR/marketing, that I can't afford from my current revenue/pocket.

Definitely DON'T go for funding at this stage. It would be just TOO COSTLY for you in terms of the stake you will have to give away for a limited amount.

Most likely at this stage, you don't even have a clear picture if you really need the investment. Have you mobilized all the cash you can on your own? All I mean absolutely all. You don't want to ask for money when you are saving some bucks just in case your idea doesn't work. Have you raised some from FFF (Family, Friends and Fools)?. Again, don't go to angels until you have covered your very basics with those.

All in all, most probably what is best for you is to grow this a bit more, get some proper biz metrics in place (churn, growth, revenue per user ...), experiment a bit with which marketing tools will work best for you and start a fire. When you have this fire started (i.e. you know, backed by data, what works and what doesn't), then YOU MAY buy some gasoline (i.e. ask for cash). Don't do it before.

Always keep this in mind that I read in some book:
"A FOOL AND HIS/HER EQUITY ARE SOON DEPARTED"

Pere


Answered 5 years ago

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