How to Fund my Startup
Funding is the focus of From Idea to Done this week. Josh and Erick discuss the ins and outs of gathering the funding to create your startup idea and making sure you’re ready to make that jump.
VO: Get ready for your semi-regular dose of random ideas from the guys at Codelation. We like to talk about big ideas companies that are winning, and those that aren't along with current events in our crazy world of software startups. So come along with Erick and Josh, who challenge you to think big, start small and turn your ideas into something on this episode of, from idea to done.
Josh: Hey everyone, I'm Josh.
Erick: and I'm Erick. And this week's idea is how to fund my startup. Josh, you've been in this business for a long time. I'm relatively new in the startup space. Can we talk about the main hurdle in the development of any idea? Like what's the biggest thing that you've got to get over when starting a startup?
Josh: Well, I don't think funding is the biggest hurdle when starving. I think a lot of people immediately go to money and the need for it, but I've seen too many people burn through money because they didn't have their other things in the right order.
Erick: Okay. So you didn't say funding and that's the name of this episode in that mildly backfire. So what number on the hurdle list is funding then?
Josh: Um, I would say let's go with number four. If I had to arbitrarily create a list of things in my head. So family feud style, what is the number one? Are you solving? Someone's problem.
Erick: There we go. And so we'll get into the other four on the family, few big board in different episodes. Like, yes. What we'll start with number four though, funding. If you're, if you're flush with cash, you probably don't need to listen to this episode. If you aren't Josh, do you have any advice that someone listening, looking for help with their, for funding, their startup?
Josh: All right. So here's a secret for the great state of North Dakota ready listening. There's a great program called innovate. ND do you have a business that can bring revenue from outside the state? The state's able to provide you $40,000 in working capital will do so. Learn [email protected], or
Erick: You can just chat with your friend, Eric who's in charge of sales at code Alation. W he definitely broadcast this to the entire internet though. So what pieces of advice do you have for those who aren't fellow residents of the glorious state of North Dakota?
Josh: Absolutely. I'm a big fan of customer funding. It solves a number of issues. One, you have an idea that your target market is wanting to, they are willing to give you money to build the thing three, I mean, magical step three profit, right? Right. No seriously, though, if you're going to build something that's going to cost, I don't know, $1,500 per year. Could you go find 10 customers that would maybe give you $5,000 for lifetime access to the software?
Erick: I think that that's a pretty solid idea. And if you can't find any customers, is your product even really worth building?
Josh: Uh, no finding someone to give you money out of their pocket will be one of the most difficult tasks you're going to accomplish as a startup.
Erick: And again, you're much more versed in this because it's been your kind of professional career and you own a business centered around helping people turn their big ideas into businesses, any kind of final thoughts that we didn't go over with this,
Josh: Uh, don't make assumptions about what people are going to want and then put those expenses on your credit card. Uh, keep your day job as long as you can, that pays the bills and really hustled to get your product to market, uh, future, you will thank you for this. Really just trust me on this one future, you will thank you for
Erick: This. Okay. Oh, man. Or get it into time travel. So we get to talk about big ideas a lot, most of the time, I can't talk of the talk about them because lawyers in the wonderful world of non-disclosure agreements. My last piece of advice is if you're listening to this and have a big idea, reach out exploring possibilities is honestly it's my favorite part of my job.
Josh: Absolutely. And you know, we briefly touched on a couple of ways to fund and not fund. Um, so head over to our blog for a more in-depth article of how to fund your startup. And thank you for listening to this episode, if you know a startup that could use our random advice, thoughts have them subscribe and leave a review on iTunes.
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About the Show
Erick and Josh talk about big ideas, companies that are winning and those that aren’t, and current events in the crazy world of software startups.
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