Share Question — Clarity

the startups.com platform about startups.comCheck out the new Startups.com - A Comprehensive Startup University

Categories

Browse Search

Loading...

How do I build a product after loosing all my initial funding money?

I run a non profit startup. I raised some seed funding from my family and friends, all totalling about $1500. This money however couldn't completely build the product and I have an unfinished product. Indeed, what I have doesn't match for the money I spent because I made some pretty bad hiring mistakes. I'm worried now because I need to get the product launched, I mean an MVP and I don't know what to do.

Venture Funding

Product Development

Holly Liu answered

It seems like you are cash-strapped. Option 1 - you can do is give equity instead of cash. Option 2 - you can give experience and no cash. Both of these options will be slower than compensating cash. And, you will have to think about a marketing strategy once you get your MVP done.

Peter Coker answered

What can you do when you run out of money before your product is built? Take your unfinished product to market. Business is fundamentally about getting customers a lot more than it is about building products.
I would presume that your half finished product was being built to solve a real problem? You need to go out there and find a few people who are really badly going through the pain of the problem you propose to solve with your half finished product. Show them how it works now and what it would do when finished and ask if they would be willing to place an order if you could deliver the product. In fact, could you get them to give you a purchase order? Even better.

If you can get that far, getting the finance for your business will not be that hard anymore.