marketing, mobile-apps, business-model, investment, lean-startupI am a guy who built an amazing platform for small businesses. That platform is an iOS app that helps customers find businesses and helps businesses bring more customers. The features are awesome and there’s so much the system is capable of doing.
The Business model is a free app for all users, but would cost a business owner to show up on it.
I am biased of course, but the professionals that I met, and discussed this with, also think there’s a good potential here.
My problem is, that I built it alone, and I am a single founder.
I made it all. code, animations, website. Everything. Going through all of the businesses is possible but too much for a single person to do. So, I thought to simply start locally at a neighbourhood near my home.
Years back I started a big project with a friend, which became a nightmare, and ever since then, I find it hard to trust people, so I built my own project by myself.
I was told that finding an investor when you are a single founder could be a problem.
I have a great product, I don’t have a team. I was working for several years on this project. I don’t know how to go on from here. I have a foundation for a test pilot. I got businesses to register (free of charge, of course) and show up on the system. Most of them asked me how much it costs, and many told me it seems like a good system.
I deeply believe users will find the app useful, as it gives them so much. Not only benefits, but also info about where they are and what’s around them.
I am perplexed. I have not enough funds to move far beyond that pilot, and at this point I would like to bring more people in (Marketing, R&D, Graphics), but I don’t have anything to give other than shares in the company, stock options or guarantee for payment in the future. Not sure what to do…
When I come to thinking about it, even if I had the formula for Coca-Cola, I wouldn’t exactly know how to move on from this point.
Maybe moving on without an investment? Maybe it could pay for itself?
Any insights, ideas, thoughts?
Thanks!
This is almost exactly the same issue I had when I started. Can I offer a few observations from my experiences? I went to see an IP lawyer who basically showed me how to cover my copyright and trademarks. He then sent me to a patent lawyer who drafted up an application and I got my patent. If you don’t protect your IP you are risking it all being ripped off for absolutely nothing. If you offer your products around without protection it can end in tears. I also found that few of the “invention” type companies who advertise in the US don’t consider products that are business improvement or inventions of a business nature. They were looking for a new type of frypan to sell at Walmart not an online application. What would help you would be an investment angel or someone similar but you would need confidentiality agreements before you do anything. There are people out there who live for this stuff and are looking to fund something new so I would search “start up incubators” or investment angels. There are also a number of start up type workshops etc where you can pitch your idea to potential investors. My last piece of advice… Find a mentor or someone who has done this before and get him/her onboard. Good luck man!
I would definitely encourage you also to check out the open innovation movement. Check this link out.. http://www.amazon.com/One-Simple-Idea-Licensing-Goldmine/dp/0071756159/ref=sr_1_1?ie=UTF8&qid=1442421886&sr=8-1&keywords=one+simple+idea
As far as patents go.. you are better off securing a one year provisional patent for $130 than going the full patent attorney route.
You have a product, and an idea, and now you want to take it to market, so now you need to become a master recruiter. I can help you there (its what I do). I am developing my own idea and was also a bit afraid of being ripped off, but as I learn more about SV I keep hearing one thing from people, and reading, so I am going to assume that this a truth in technology:
“Ideas are a dime a dozen, execution is everything”
Turn yourself into a CEO. Start thinking like one. Do you want to make this a business? Find a good accountant. Plead poorness to him and ask for advice. Try and find someone who worked for the IRS if you can. Incorporate. Are you going to have employee’s one day? Go C Corp, consider Delaware (VC’s like that, lots of business reasons, find out why) Once you incorporate, hire. Be honest, offer equity. Not too much though (speaking of Equity, read read read, see what others have written, contact me if you like) Identify what you need for your company, each position, and their responsibilities. Build a company page on angel.co Post some job openings. It’s free. Tell people what you want, tell people where you are, and offer people the opportunity to come build something with you.
When you have done that contact me back and we can talk some more..
There seems to be a chicken and egg problem here. The app is not useful to customers (even for free) without businesses. The businesses wont come (and pay) unless people are using the app. Perhaps you need to alter your business model to target user base growth, for example (based on your vague explanation of the app):
If the app is sufficiently polished and you have all the other infrastructure good to go (web site, branding, etc) then you might be able to go it alone. Having an up and running app with a real customer base will help you establish the worth of your product (good or bad).
Depending upon how things are going, you can then choose to expand, pivot or move onto something else.
All content is licensed under CC BY-SA 3.0.