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.
J/E: Hey Everyone, I’m Josh and I’m Erick
E: This week’s idea is how do I fund my startup? Josh you have been in this business for a long time. I am relatively new to the startup space. Can we talk about the main hurdle in the development of any idea. Josh what is the biggest hurdle to get over when starting your startup?
J: Well I don’t think funding is the biggest hurdle when starting. I think a lot of people immediately go to money, and the need. But I’ve seen too many people burn through money because they didn’t have things in the right order.
E: You didn’t say funding… The name of this episode is how to find funding. What number is that on the hurdle list then?
J: I would say #4 if i had to arbitrarily create a list of things in my head. Family Feud style, what is the number one…. Are you solving somone’s problem.
E: We’ll get to the other ones in different episodes I guess. So number for on your list. Funding. If you are flush with cash you probably don’t need to listen to this episode. If you aren’t Josh do you have any advice to someone listening looking for help with funding their startup?
J: Here is a secret for the great state of ND. Ok ND residents listening? There is a great program called InnovateND. Do you have a business that can bring revenue from outside the state? The state is able to provide you $40k in capital to do so. Learn more at innovatend.com
E: Or just chat with your friend Erick who is in charge of sales at Codelation. We definitely broadcast this to the internet. What are some pieces of advice for those who aren’t fellow residents of the glorious state of North Dakota?
J; 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. Two – They are willing to give you money to build the thing. Three – ??? Profit? No seriously if you are building something that would cost $1500/yr could you go find 10 customers that would give you $5k for lifetime access to the software?
E: If you can’t find any customers, is your product really even worth building?
J: Nope, finding someone to give you money out of their pocket will be one of the most difficult tasks you’ll accomplish as a startup.
E: Again you are much more versed in this because it has been your entire professional career, and you own a business centered around helping people turn their big ideas into businesses. Any final thoughts that we didn’t go over.
J: Don’t make assumptions about what people are going to want and then put your expenses on a credit card. Keep your day job that pays the bills and hustle to get your product to market. Future you will thank you for this. Trust me….
E: Oh man, now we’re getting into time travel! We get to talk about big ideas a lot. Most of them I can’t talk about because of wonderful lawyers and non disclosure agreements. My last piece of advice is if you are listening to this and have a big idea reach out. Exploring the possibilities of big ideas is the best part of my job.
J: Head over to our blog for a more in depth article on how to fund your startup. Thank you for listening to this episode. If you know a startup that could use our random advice and thoughts have them subscribe and leave a review on iTunes.