Questions

When I first started working on my start up, it seemed that until it was generating revenue,it would be pointless to ask anyone to invest. So I pursued it myself. Now that I have spent about $300K in development, I have a working product with paying customers. But I think I need investment to make it grow and I'm not sure the next steps. A local business association agreed to promote the solution to 70 members if I provided a 15% revenue share. As an example, for the business that referred me into their local association, the annual cost for me to deliver them services was $300 a year. The amount they paid for the service was $3,000 a year. Client is reporting results of $40,000 a year in new client acquisition. We expect their results to increase and have agreement to raise the cost accordingly. Our cost of service will not rise. Need help in understanding funding options to help grow the business now that I see it has roots.

Hi there! I'd recommend focusing on gaining more customers and generating funding through additional revenue from customers rather than going after investment.


Answered 8 years ago

Unlock Startups Unlimited

Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.

Already a member? Sign in

Copyright © 2022 Startups.com LLC. All rights reserved.