Budgeting for startup
Out of context: Reply #14
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- cannonball19780
Plan financing for different product readiness stages. Follow something like the double diamond of that is what fits your process. You have two places to spend big. I recommend gouging family and friends first.
For the business plan and “paper prototype” you are dumping $Xk into research. Don't rush this or be stingy. The discovery phase is for you to test the viability and desirability of your idea with people. Expect changes. Spending more here means spending less time developing a...
Product alpha. For a coded prototype you are dumping a fixed amount into a LOCAL developer whose neck you can shake. Stay away from India. Demonstrate front end and simulate the back end because you will gut what is under the hood later for something you can scale with.
For a financing plan, use convertibles that vest after a two year runway into nonvoting shares to pay family and friends back, and design a path for investors to come in, valuate your idea and take you to a series A.
Now you’re off to the races.