How not to do a startup or how to squander $ 160,000
I’m telling you the story of my failed startup.
About 2 years ago, at the very beginning of the crisis in the States, I decided to leave the construction that I was doing at that moment and go online. Why did I decide to do this; my brother at that time for about 3 years already hit decent money online, so I was drawn.
On the Internet, I was not a beginner, I already understood something in SEO, and so on in details. There was one solution, you need to do a project. A domain name was found that meant nothing but was easy to remember.
At that time, I did not understand how much money I needed for a startup that I wanted to launch. I had about $ 160k of greenery. I expected that for 3 months this would be enough, and then the project will begin to pay for itself. (and if not, then attract investment =))
TK was written, if the ego could be called that. An office with an area of 600 sq. M was rented at a cost of $ 7.500 per month + utilities about $ 1.000 per month. It was decided to make repairs in the office, for which about $ 15,000 + was spent on office furniture and equipment $ 7,000.
Hired 4 workers, 1 designer, 2 programmers and 1 walkie-talker, for writing content and for other small things.
People cost me $ 10,000 a month. After 2 months, it became clear that we won’t do anything ourselves, and it was decided to hire a company that will make the project to order, after which we will unwind it.
It turned out that my brother has a friend who used the services of such an office more than once. It seems like a serious office ... Well, it is said - done. All communication with this office passed through this acquaintance. The project was promised to be turnkey in 3 months. After 2 months, it turned out that nothing was done at all. 30% of the deposit was already paid, which amounted to $ 7.500.
By that time, I was horrified to realize that nothing would work. Money is over, there is no project.
What have I learned from this?
You need to be realistic and understand that no project will pay for itself immediately after creation.
It’s not realistic to create something worth 3-5 months.
If I have a sum of less than 1 m, the project needs to start on my knees, without renting an office or buying equipment.
Save on everything.
You need to be in the subject 100%.
Never work through someone, only directly.
Now, after a little more than 2 years, I understand all this. I was able to get out and find the strength not to leave online. Implemented a small project that brings a steady income and does not require large expenses.
I’m doing another startup, which I’ve been preparing for about a year and has already been in development for 8 months. After 2 months, it is planned to go into closed testing. This is not a project where it is planned to gain an audience, and then think about how to make money from them.
At the moment, you can subscribe to invites . A promotional site was also made , which I will start advertising 2 months before the official opening.
PSDo not kick for mistakes. One has to write very rarely in Russian, since he never lived in Russia.
Update : Moved to Startups, thank you all for karma.
Update2: For all those who believe that this is a fictional story, for those who want to find out what the new project is actually about, for those who want to find out what I went to, please: please read the comments.
About 2 years ago, at the very beginning of the crisis in the States, I decided to leave the construction that I was doing at that moment and go online. Why did I decide to do this; my brother at that time for about 3 years already hit decent money online, so I was drawn.
On the Internet, I was not a beginner, I already understood something in SEO, and so on in details. There was one solution, you need to do a project. A domain name was found that meant nothing but was easy to remember.
At that time, I did not understand how much money I needed for a startup that I wanted to launch. I had about $ 160k of greenery. I expected that for 3 months this would be enough, and then the project will begin to pay for itself. (and if not, then attract investment =))
TK was written, if the ego could be called that. An office with an area of 600 sq. M was rented at a cost of $ 7.500 per month + utilities about $ 1.000 per month. It was decided to make repairs in the office, for which about $ 15,000 + was spent on office furniture and equipment $ 7,000.
Hired 4 workers, 1 designer, 2 programmers and 1 walkie-talker, for writing content and for other small things.
People cost me $ 10,000 a month. After 2 months, it became clear that we won’t do anything ourselves, and it was decided to hire a company that will make the project to order, after which we will unwind it.
It turned out that my brother has a friend who used the services of such an office more than once. It seems like a serious office ... Well, it is said - done. All communication with this office passed through this acquaintance. The project was promised to be turnkey in 3 months. After 2 months, it turned out that nothing was done at all. 30% of the deposit was already paid, which amounted to $ 7.500.
By that time, I was horrified to realize that nothing would work. Money is over, there is no project.
What have I learned from this?
You need to be realistic and understand that no project will pay for itself immediately after creation.
It’s not realistic to create something worth 3-5 months.
If I have a sum of less than 1 m, the project needs to start on my knees, without renting an office or buying equipment.
Save on everything.
You need to be in the subject 100%.
Never work through someone, only directly.
Now, after a little more than 2 years, I understand all this. I was able to get out and find the strength not to leave online. Implemented a small project that brings a steady income and does not require large expenses.
I’m doing another startup, which I’ve been preparing for about a year and has already been in development for 8 months. After 2 months, it is planned to go into closed testing. This is not a project where it is planned to gain an audience, and then think about how to make money from them.
At the moment, you can subscribe to invites . A promotional site was also made , which I will start advertising 2 months before the official opening.
PSDo not kick for mistakes. One has to write very rarely in Russian, since he never lived in Russia.
Update : Moved to Startups, thank you all for karma.
Update2: For all those who believe that this is a fictional story, for those who want to find out what the new project is actually about, for those who want to find out what I went to, please: please read the comments.