Finding starting a startup very overwhelming

Gerryhide

Hi all,

I started a webapp built on my previous experiences and problems working freelance. To be honest I created the app for my own personal use and then i decided to grow it out after speaking to others who were interested in it too, its gone through many versions but I think its in a good place.

I have a small number of users subscribed around the world (less than 100) as its only officially live since last year. I have bootstrapped everything as I have a full-time job too but now I want to give my all to this project. I feel the market is there as I have had many trial users but its not perfect and certainly not polished.

This is where I am starting to get anxious, ideally I need funding to continue - friends&family isn't an option and I have finance out already with credit union and bank to support parts of the project to date, so those avenues are closed.

Business plans, marketing etc and the like are very much not my strong point - i'd rather keep my head down and work on the product but since this is all me, i have to start doing these things to continue building the product.

Understandably, the likes of EI, angels or investors are looking for pitch decks, business plans, "What are you top 5 highlights" etc but when i research to get some inspiration or ask questions in groups i get the "no one ever reads business plans.." and I also consider that any sort of business plan would be out dated very quickly as new users and product features are added almost daily..

I'm very analytical and I find it all very overwhelming and more so confusing, I hired a business plan writers in the US, UK and Ireland over the past year and none of them provided anything satisfactory - very much copy and pasted work.. if anyone has any similar experiences or light at the end of the tunnel, please let me know!

Axwell

I don't know the purpose of the system or how ground breaking it is but the numbers you are talking are tiny. Yes its great to build something and see people using it and have have some feedback but less than 100 shows a proof of concept, it needs to grow from there before anyone is going to consider investing etc unless you have something really innovative.

Generally speaking talk of EI, Angel Investors etc is something that people talk about because they think that's how it works when you start a business - come up with an idea, go to EI, get funding, get investors, become a success. This very very rarely happens..most people have to graft and put blood, sweat and tears into it, borrow from friends and family and work their way up from the bottom. There are ways of getting funding but the reality is you have to jump through the different stages and follow the processes way before that to get to that point of EI and Angel Investors unless you really have something amazing.

First steps are always talk to the LEO, do a business course and see if there is any initial funding available (dependent really on how long the business has been up and running and its potential).

Doing that means when you do go to EI they will see you have done some ground work and started at stage one..the local office. EI are mainly interested in companies that export, have high turnover and create jobs in a space of 3-5 years. At this stage you have a few options presented to you - you can apply to programmes like New Frontiers/DIT Hothouse, Ryan Academy, AIB Startup Academy, Ryan Academy or potentially apply for the CSF (Competitive Startup Fund). The purpose of any of these is really to flesh out the business idea, get your business plan properly in order and make you investor ready.

Getting CSF then puts you in a position where you can speak to other investors and there is the possibility of some small investment from those or trying to get the company to the stage of HPSU (High Potential Statup Up) if you are going through the EI channels.

No matter what way you approach it though you have to do the business side of things as well as working on the product development. You need the business plan to show you have thought it out - whats the business model, whats the market size, whats the potential revenue for the next 3 years, who are your competitors, whats the project roadmap for the next 12 months. In something like New Frontiers you are partly working on figuring out all of this as you go along the programme. CSF is a bit more fast tracked and you need to be more ready going for it.

If you are doing CSF and get through to the selection process you need a pitch deck that highlights these points and gets across the key info to show there is a viable business there. If you cant answer those sort of questions you aren't going to be in a position to apply for the likes of CSF, even in a LEO office you need to be able to convince someone there is potential.

The other big thing with CSF or any of these is having a team. You cant do it all on your own, you know this and so do they. You are the coder, you can be the CEO but you cant be the CFO, the head of marketing and everything else in between. You are expected to look at your weaknesses and fill those gaps, even if its for equity initially as you arent in a position to pay but obviously finding someone to work for equity alone is a big ask but if the idea is as good as you think then maybe you can convince others of the potential too.

I have dealt with startups (doing MVP design and development, pitch decks etc) who have have got LEO funding, who have got CSF and further investment afterwards and those that have failed before they even got that far. What they all have in common is they needed to do the homework, have the business plan, have the pitch deck and know their business before you can stand in front of these people and ask for money, investment or help. You can't avoid it, the no one reads business plans is rubbish..they may not sit there and read it cover to cover but you need to prepare it and most importantly know the info inside out and have a pitch deck that can summarise everything and convince people there is a viable business there. The business plan changing is also not true - the core business will not change, the roadmap will not and the business model will not if you have a business plan outlining where you see the business in the next 3 years. Adding extra features are just that, features that are part of a roadmap. Adding extra users should be part of your business plan or else it already has no chance of succeeding so those points are just irrelevant and an excuse to not do one.

That's the reality of what is ahead of you if you want to look at funding and accelerator programmes and running your own tech startup. It's not easy, there's no free money just so you can put your head down and code and it brings long days, sleepless nights and plenty of stress - but if you truly believe in the project then those are just obstacles you over come. If all of the above sounds like its way too tough or not as easy as you hoped then it may be time to reassess your idea or at least how you proceed with it.

Looking at your own current situation for a minute - you have less than 100 users, how many of them are paying for the service? Do you offer different levels of subscription with added features or benefits? Can the subscriptions fund the business, if not how many subscribers and active users would you need to have to be in that situation.

Is it something that is just useful to individuals or is it something that a company can use - i.e purchase licenses and use within their business? Again I don't know the purpose of the system, it would be good to know what it does as a point of reference.

You said you want to give your all to this project - are you willing to give up your day job to pursue this idea? From a financial point of view are you in a position to? If the answer is no then you are going to have to stick at it part time and try grow the user base until such a time its generating revenue to enable you to work full time on it.

Gerryhide

Hi Axwell,

thank you so much for the reply - I really do appreciate it. I did approach the LEO a year ago and was set up with a meeting with a mentor - who frankly had no idea what I was creating and was more interested in asking me to develop his e-learning website!

I don't or didn't think i would qualify for their feasibility/priming grants but i will revisit by trying the LEO where i live instead of the one where I work.

You are right in taking all the steps on the ladder..

capefear

Why not stick up the app here and see what the feed back is.