We will say no to investments

    We do not need investor money. We do not need money from a small business support program. A rather strange statement for a person opening his IT project, but this is the logic and why:



    When opening your project, you need to remember and keep in mind two simple things:

    1) What will be the benefit of the project

    2) How to get money for your product / the service

    It's no secret that injecting money can harm the values ​​of the project, reduce your motivation, and most importantly, direct your activities in a completely different and sometimes unnecessary direction.

    Let's get down to business. Having developed the concept of our project, we began to move in terms of determining the size of the project to begin our activities. And then several options appeared:

    1) Own funds allowed to launch the project, and spending your time on it, it was possible to avoid large monthly expenses. That is, we would create an end product with a low level of costs.

    2) After talking with several consultants in venture funds, our idea was not accepted. More precisely, the monetization model depended strongly on factors that could not be taken into account. Therefore, they did not agree to invest large sums in our project. But we were able to find a couple of offers with an investment amount of $ 15-20t. However, we already had these funds.

    We decided to launch our project with our own money, and said “No” to small investment proposals. During the provision of the prototype, we still interested investors, but found their proposals inappropriate.

    1) Having a small project, we could reduce costs, and most importantly, it gives free time to direct the development of the project in the right direction. Time is money.

    2) A small funding actually does not give anything from the utility side, or by the way the project is monetized. Yes, in fact, this money is useless and they are not needed.

    3) For a lot of funding, we found ourselves not hungry enough to accept all the money and digest it. We refuse money, since future development needs to be planned, having received a response to the project.

    Thus, we came to the conclusion that not always getting investments helps the development of the project. It is necessary to soberly assess your strengths, evaluate possible ways of expansion, and it is also important to maintain your concept of utility for people. While the whole project belongs only to you, you are extremely flexible and can better deal with errors.

    Since we live in the Far East, we have a program to support small and medium-sized businesses. Having visited the local department of economic development, we learned the following:

    1) There is an opportunity to receive a grant free of charge up to 200 tons of rubles, provided that you open your business and register it in the territory of your city.

    2) You need to put all the money into developing your business.

    3) Unfortunately, it is impossible to spend money on creating a site and buying equipment in the form of a server. It is necessary to open either production or an office that provides services.

    We had the opportunity to open an office for our IT project for free. However, after weighing all the pros and cons, they answered “No”. In any case, the time difference with Moscow forces us to work at night, and since the project is mainly aimed at all of Russia, the usefulness of the office tended to zero. We decided to abandon the additional monthly rental costs and unnecessary office stays all day.

    When developing a project in the field of psychology, we noticed a trend in the level of gap. There are many low-cost low-quality sites and only a few large portals that conduct such activities. As such, the middle layer does not exist. We decided to take this level, leaving our costs minimal, and abandoning the unnecessary struggle with large companies. In this size, there are many advantages.

    Of course, each company should strive for development and expansion, but as our experience has shown, you can easily refuse to finance and at the same time get more benefits. All that is needed for this is a clear understanding of what you want and the ability to say no.

    Now our project is at the testing stage, so soon you will be able to see our press release, but for now we will say: “No”.

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