Loading...
Answers
MenuIs it ok to use pre-existing services to build a startup on?
Do I need to re-invent the wheel and have all the cost or is it ok to buy a pre-existing platform - like a white label classifieds app - and then customise it to fit my classified app needs?
Answers
Everyone does this.
For example, take the entire LAMP ecosystem.
You could write your own Linux + Apache + MariaDB + PHP + OpenSSL + WordPress...
Or you can just use these, as they currently exist.
Same applies to ideas.
Dan Kennedy is found of saying, "Pioneers come back riddled with arrows..."
In other words, doing anything new is likely to fail.
Better to take something... anything... already working... put your own spin on it... then go after part of an already existing market.
As for your specific project, you've provided to little detail... to provide any in depth advice...
Since your project is Tech based, likely good to bring on board someone to serve first as a Fractional CTO (Tech)... then after your tech is working... change over to a CMO (Marketing)...
Yes, it is absolutely fine to use pre-existing services as long as it matches the list of your requirements and you make sure that the service doesn't violate any of the terms and conditions.
The reason this is acceptable is because they are already built and the structure of the service is already established. The only thing you need to do is adapt your use case to fit your business needs.
For classified, there are many wordpress themes and PHP scripts available market that can be used readily. For more information we can discuss this over a call - so I can give you maximum value for your money. Take a look at the great reviews I’ve received: https://clarity.fm/ripul.chhabra
Hi
Unless you're doing something really unique (and even then...) it is actually advised that you start with something that already exists in order to first test the market and see that your idea/business is indeed feasible. Once you've validated your idea, you can spend money (if need be) on creating something tailor made.
By testing a simple platform first, you will learn a lot about the market, the users, what things you should do different etc....
I am a mentor on Startups.com, a lecturer, and a startup lawyer. I've successfully helped over 400 entrepreneurs, startups and businesses and I would be happy to help you. After scheduling a call, please send me some background information and the 2 main questions you want answered so that I can prepare in advance (to give you maximum value for your money). My reviews: https://clarity.fm/assafben-david
Please please please, use what's already available.
I'll give you an example, we use https://spark.laravel.com for billing, https://signaturegenerator.co to generate signatures, https://solidframework.net to convert documents, and probably a dozen other software solutions to create ours.
There's no where that says you need to use 100% proprietary code. Usually, this is done when you can't find anything opensource to tweak or if what's available is too expensive for your budget.
If there's an option, 9/10 startups stand on the shoulders of giants by using what's available. This is especially true if the market hasn't been validated in any meaningful way.
Related Questions
-
For every success story in Silicon Valley, how many are there that fail?
It all depends on what one decides to be a definition of a "success story." For some entrepreneurs, it might be getting acqui-hired, for some -- a $10M exit, for some -- a $200M exit, and for others -- an IPO. Based on the numbers I have anecdotally heard in conversations over the last decade or so, VCs fund about 1 in 350 ventures they see, and of all of these funded ventures, only about 1 in 10 become really successful (i.e. have a big exit or a successful IPO.) So you are looking at a 1 in 3500 chance of eventual venture success among all of the companies that try to get VC funding. (To put this number in perspective, US VCs invest in about 3000-3500 companies every year.) In addition, there might be a few others (say, maybe another 1-2 in every 10 companies that get VC investments) that get "decent" exits along the way, and hence could be categorized as somewhat successful depending on, again, how one chooses to define what qualifies as a "success story." Finally, there might also be companies that may never need or get around to seeking VC funding. One can, of course, find holes in the simplifying assumptions I have made here, but it doesn't really matter if that number instead is 1 in 1000 or 1 in 10000. The basic point being made here is just that the odds are heavily stacked against new ventures being successful. But that's also one of the distinguishing characteristics of entrepreneurs -- to go ahead and try to bring their idea to life despite the heavy odds. Sources of some of the numbers: http://www.nvca.org/ http://en.wikipedia.org/wiki/Ven... https://www.pwcmoneytree.com/MTP... http://paulgraham.com/future.html Here are others' calculations of the odds that lead to a similar conclusion: 1.Dear Entrepreneurs: Here's How Bad Your Odds Of Success Are http://www.businessinsider.com/startup-odds-of-success-2013-5 2.Why 99.997% Of Entrepreneurs May Want To Postpone Or Avoid VC -- Even If You Can Get It http://www.forbes.com/sites/dileeprao/2013/07/29/why-99-997-of-entrepreneurs-may-want-to-postpone-or-avoid-vc-even-if-you-can-get-it/MB
-
How much equity should I ask as a C-level executive in a new startup ?
As you may suspect, there really isn't a hard and fast answer. You can review averages to see that a CEO typically becomes a major shareholder in a startup, but your role and renumeration will be based on the perceived value you bring to the organization. You value someone's contribution through equity when you think that they will be able to add long-term benefits, you would prefer that they don't move company part way through the process, and to keep them from being enticed by a better salary (a reason for equity tied to a vesting arrangement). Another reason is when the company doesn't have salary money available but the potential is very strong. In this situation you should be especially diligent in your analysis because you will realize that even the best laid plans sometimes fall completely short. So to get the best mix, you have to be very real about the company's long-term growth potential, your role in achieving it, and the current liquidity necessary to run the operations. It should also be realized that equity needs to be distributed. You cannot distribute 110% and having your cap table recalculated such that your 5% turns into 1% in order to make room for the newly hired head of technology is rather demotivating for the team. Equity should be used to entice a valuable person to join, stay, and contribute. It should not be used in leu of salary that allows an employee to pay their bills. So, like a lot of questions, the answer is really, it depends. Analyzing the true picture of your long-term potential will allow you to more easily determine the correct mix.DH
-
What is a good/average conversion rate % for an e-commerce (marketplace model) for customers who add to cart through to purchase order.
There is quite a bit of information available online about eCommerce conversions rates. According to a ton of sources, average visitor-to-sale conversion rates vary from 1-3%. This does not mean the Furniture conversions will be the same. The bigger problem is that visitor-to-sale conversions are not a good data point to use to measure or tune your eCommerce business. All business have some unique friction factors that will affect your final conversion rate. It's very important to understand each of these factors and how to overcome them. The best way to measure and optimize is to take a conversion funnel approach. Once you have defined your funnel you can optimize each conversion rate to better the total effect. For example: Top of the funnel: - All web site visitors, 100,000 / month First conversion: View a product page, 50% of all visitors Second Conversion: Add to Cart, 10% of people who view products Final Conversion: Complete Checkout, 80% of people who put items in a cart In this example we see that only 10% of people who actually view products put them in to a cart, but 80% of those people purchase. If you can figure out why visitors are not adding items to their cart and fix the issue to increase the conversion rate, revenue should increase significantly because of the high checkout rate. You can use free tools like Google Analytics to give you a wealth of information about your site visitor and their behavior or there are some great paid tools as well.DM
-
Should I create a WordPress site or build a custom website?
Go for Wordpress initially. -- Custom website will delay your launch plans considering all factors. -- Wordpress can be used to meet your requirements from day 1. -- Once you have enough visitors and decided the revenue model + business objective plan for a customized website to be developed from scratch.BK
-
What is the best platform to create a member based CMS website? (e.g. Squarespace)
Most of my friends use www.wordpress.org and http://member.wishlistproducts.com/ to create their membership sites. Hope that helps.DM
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.