Why startups do not need money for a project?

"Money when used judiciously will help you to start faster. But their absence will never keep you from the start. "

Mike Michalowice

"I have no / little / not enough money for a startup." Yeah... well, what can I say... That, my friends, is excellent! If you had a lot of money to organize everything "just right", I would be seriously worried that you will soon enough bankrupt. That means you do not have enough, means only one thing - it is necessary to think a head from the start. Very fond of the phrase "necessity - the mother of invention", and I think today it is in the context of article very helpful. The presence of crispy kupyurok, as you know, negate all the weaknesses and problems. And when you do not have a penny, we have to take the test on a daily basis "perfectly well". Small budget forces to optimize all that is possible, and at the same time, to grow in the right direction.

"There is no money" - is no reason not to start a business. It can not be built only if the only thing that interests you - to get rich quickly. Greed, among other things, a sense of short-lived and the ugly. And, no matter when you start raking in the money bags, you'll pay for them. So create a startup to prosper wisely, and not hastily. This works best.

I know of cases where a startup could exist without investment. And this model is the best possible. About two years ago a friend of mine, whose name I can not call for specific reasons, searching for investors for his new startup. Now his business is seriously promoted in Ukraine and brings more than one million "green". I recently asked him whether he was able at that time to get the required amount. And his answer was "No". The longer the project will be able to live without other people's money, the better. When he picks up the pace, will manifest itself as a promising and promising start-up, to be sure, investors will find you. And then rates would no longer be in the thousands, and millions of dollars.

Take advantage of their lack of money. Maybe it sounds strange, but it's worth it. Try first to do the minimum. When your asset will begin to grow, set it aside and continue to live as before, with no extra strata. Many situations can be solved without spending a dime. Develop these skills, and you soon will practice the habit of properly dispose of every bucks.

"I need money. Without it, I can not start my startup "...

... These words to me rather stupid young man said. And it was a good idea. It bothered me only one - to a meeting he had come on a brand new BMW. I really do not understand this... How can startups to ask me to invest money in it, if he does not want to take the risk? If he had unconditionally believed in the project, he would have sold his car, but in general, the house would be laid, and the funds to build a solid platform of new business. Instead, he came to me in the hope to shift some of the risk on my shoulders. Naturally, I turned him down.

Such are the complaints and requests I hear all the time, and you know, perhaps, I will be honest, they do not touch me. The problem with many people in the obsession with money and ignoring other, more important aspects. Understand, finally, most importantly - start-up should bring money, but can not start with them. Whether you're a hundred times brilliant startups, but if after sitting in the hope that you will fall down a business angel and put his hand with crispy banknotes, it was never open yourself in your chosen niche. Cash to be generated, rather than wait, she appears out of nowhere. I'm much more interesting to develop Revolverlab.comRather than the hundreds of other possible projects, because my team she gets mad pleasure in what he does. And it will do so, and further, even if the money runs out dramatically, because the question of hasty growth to get rich quick is not necessary at all.

Ckazhite me frankly, when you have time to decide what you have to just because you come up with a startup? Without an understanding of the fact that you no and did not have to, you will not survive in the full stream. This is a market. Let launched on the Internet. And be startups means not only come up with something interesting, but, in addition, it is something to be able to create and then also to sell to the market.

While some, by the way, are betting on the notorious formula of the F three, working all over the world: Family, Friends, Fools. Translated into Russian, the formula will become a three-D: home, friends and fools. This method is simple, but is designed for the public without ambition: these investments, as well as any subsequent gains remain modest, and the problems will be, oh, how much. If you intend to do something good and grand, it is better to opt out of this scheme.

An alternative option for the beginner - to work with an experienced startups

In general, look at their own situation critically. You can actually bring your own start-up to success? Do you have the strength to cope with all the difficulties that await you?

If you do not yet have enough confidence in their knowledge and business angels are in no hurry to assist you, try to go the other way. Startups can get ready for the opening of the project for months and even years, reading theory and trying to transfer the experience and business model of other people over. This is a good way, I do not argue. However, I can tell you for sure, we do not come up with anything else in the world best practices. Try to join the team of experienced startups. Here you select the desirable scope, which would be closest to your not yet implemented the idea.

I will assume that some of you, this model seems hopeless - why work for another person, if you do during that time can make your project? Yes, you can. But it has not yet done. So, some of the puzzle in your picture is not enough. So why not fill the gap, gaining experience on the side? Most likely, an experienced startups already has links with potential investors who will be able to see your potential and play an important role in your project in the future. In addition, in 80 cases out of 100 startups primarily engaged in the realization of other people's ideas. And only then, realizing all the specifics of the market, being able to earn a starting capital for the realization of an idea or with the support of investors, which have already had to communicate, they have launched their own projects.

It's like in the book about Harry Potter: get into the house №12 on Grimmauld Place can only those who have already been there. Attract investors often can only be one who worked on this before.

At the start of the "3 pillars" of successful startups

1. Learn how to minimize costs.

Build a startup, when the money is - easily. Complicated but promising - to search for the optimal solution to the problem and ways to get what you want for free. In this case, when a startup gets on his feet and will generate income, you will be thoroughly prepared: hardening passed, the skills gained. As a result, your company will have all chances to survive the competition.

2. Do not sell too soon.

Most startups are trying to attract the first thing a lot of money and investors. Many of the newly minted business immediately begin to spend the proceeds on nonsense. I remind you - for everything, sooner or later you have to pay. So you've spent the money of the investor. In theory you waiting? Firstly, you will lose the profit from the project. And secondly, to implement their ideas quite difficult under foreign pressure. You can think of a serious offer when the startup is ready for sale when it is of interest and is worth much more expensive than, say, a year ago. Now do not you, and you will be able to choose - with whom to be and whose money to take.

3. Fully focus on startup.

Cut off all unnecessary. You can not build a web project, just because you are afraid to remain without basic work. It's time. Your reputation in the future will be well very very hard times. And second, it is impossible to start a new business without getting rid of the old. Everything that is contrary to the principles of your startup should speak clearly "no." Also, be prepared to frequently change his mind and quickly rebuilt on the current situation.

At the start of the "3 pillars" of successful startup

1. Automation.

The idea that you can automate as much as possible, the internet will be much more competitive than the one that requires constant monitoring. Take, for example, the service E-com, which is just the same, and is built on this principle. He sells an application that automates the sales agents. And communicate with the trading system of the company is possible through a cloud service. If your startup will have a similar concept have any chance of eventual success.

2. Scaling.

Startup - an intermediate organization which is created only in order to grow into a big company. At an early stage startups giving their all on product sourcing and market research. And while they are willing to work in the wild instability. And in the later stages of the development of start-ups are already in search of a scalable business models that can turn them into a big company. Here at this stage of the new employees are hired, the project is preparing to enter the international level, more money is spent on attracting new customers, build a business model.

But then I would advise you not to rush. Only if your startup corresponds to the market, and you have clearly defined income-generating scheme, you can start to scale it and develop further. And if the process is running ahead of time, it will inevitably lead you to failure.

3. Geolocation.

Let's say you have created a site of collective purchases. If you take into account the user's location, you will be able to offer him the bonuses or discounts, which are in close proximity. The chance that your service will use to increase significantly. It is desirable that your business could live anywhere. You can start with Ukraine, and then gradually to cross the ocean and work on the West. Tying your startup to one place - not the best thing you can do for its development and success.