the startups.com platform about startups.comCheck out the new Startups.com - A Comprehensive Startup University
Education
Planning
Mentors
Funding
Customers
Assistants
Clarity
Categories
Business
Sales & Marketing
Funding
Product & Design
Technology
Skills & Management
Industries
Other
Business
Career Advice
Branding
Financial Consulting
Customer Engagement
Strategy
Sectors
Getting Started
Human Resources
Business Development
Legal
Other
Sales & Marketing
Social Media Marketing
Search Engine Optimization
Public Relations
Branding
Publishing
Inbound Marketing
Email Marketing
Copywriting
Growth Strategy
Search Engine Marketing
Sales & Lead Generation
Advertising
Other
Funding
Crowdfunding
Kickstarter
Venture Capital
Finance
Bootstrapping
Nonprofit
Other
Product & Design
Identity
User Experience
Lean Startup
Product Management
Metrics & Analytics
Other
Technology
WordPress
Software Development
Mobile
Ruby
CRM
Innovation
Cloud
Other
Skills & Management
Productivity
Entrepreneurship
Public Speaking
Leadership
Coaching
Other
Industries
SaaS
E-commerce
Education
Real Estate
Restaurant & Retail
Marketplaces
Nonprofit
Other
Dashboard
Browse Search
Answers
Calls
Inbox
Sign Up Log In

Loading...

Share Answer

Menu
Cash Flow: How do you make money to survive while you are building a business? What are some quick ways to make money with less time commitment?
DF
DF
Daniel Freedman, High-tech entrepreneur, VC, Mentor, Executive answered:

If you can, try doing some short-term contract work for people who might one day be customers for your products. Often, people call this kind of work "consulting", though consulting really means being asked for advice, which is just one kind of short-term contract work.

The reason contract work is good for entrepreneurs is that it puts them squarely in front of a lot of customers, where the entrepreneur can notice problems or issues that many of them have in common. From that, the seeds of a product idea might germinate, and the company can begin to grow from these early customers.

The down side is that it of course takes a lot of time to do this kind of work, and your market may be running away to one of your competitors in the mean time. So, are there alternatives? For some people, there are. The most usual being to obtain external investment for your business from family and friends. There are downsides to this too, of course. The main one is that if your business isn't as good as you initially thought, you might disappoint these family and friends, which feels really bad. Plus, you probably learned something during the failure, and perhaps are ready to try again. Good luck getting money from family and friends for another business, if you screwed up the first one.

So its a balancing act. Lose speed but gain experience. Or gain speed but forego early customer interactions. These are not the only two possible outcomes, but they are representative.

Talk to Daniel Upvote • Share
•••
Share Report

Answer URL

Share Question

  • Share on Twitter
  • Share on LinkedIn
  • Share on Facebook
  • Share on Google+
  • Share by email
About
  • How it Works
  • Success Stories
Experts
  • Become an Expert
  • Find an Expert
Answers
  • Ask a Question
  • Recent Answers
Support
  • Help
  • Terms of Service
Follow

the startups.com platform

Startups Education
Startup Planning
Access Mentors
Secure Funding
Reach Customers
Virtual Assistants

Copyright © 2025 Startups.com. All rights reserved.