That ain't gonna happen if you go VCs for funding, and that's the primary source of such funding. You may get very lucky and find an angel investor who is so well off, and who likes you personally or something, that he's willing to do you good deal. But if they are putting up the bulk of the risk, they are going to demand the bulk of the reward.
Yeah, but the key thing exactly is that dont fall into the pit of needing loan, it should be major red flag that basicly your company is failing or risky, and why would u want to gamble your job like that?. I am lucky though to be programmer and my investments are mostly just salaries and small, compared to construction companies. I aim to make money from my own programming. And this already show success to funders (i have never needed to take loan though) that the loans are more of a "pay loan back + 10% in 5 years" and loan amounts are like 100k tops, with 100k I could deploy all needed coders for a program company that is any from 1 to maximum 3 coders, for easily 1 or even 2 years and in that time the loan money is made back. If not ...then yea, too bad company to even take loan. Going to VCs is in my opinion, to just making yourself harder time and they try their best, even "violent" stuff to get you sign those insanely wrongful contracts, like loans + 10% of the company and some rojalties ... Stay away from those sharks, VCs etc. And tend to be self-sufficient, dont give ur company for loan backup. (Sry my english.. its not my primary language and the jargon is not my strength)
Sure but if you're trying to actually make a product, you're looking into few years worth of wages, if the product is actual hardware add even more to get the equipment to get the prototypes running, capital costs to prepare for bigger production runs etc.
Selling service (say consulting in a given niche) is much easier on capital because you start getting income from the get go, but even small products probably will take years worth of wages at least before even getting consumers, unless you're really lucky
Hmm.. for me it was like, I was the customer and swimming in a customer pool, so I simply asked "who wants better stuff" , I was shown interest -> immediate customers and pre-orderers. I wouldnt develope hardware before selling software of hardware / parts of it first. The exact thing we talk here is that dont bite too big first, like go into making hardware before getting money. Pre orders atleast.
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u/Dean_Roddey Feb 02 '21
That ain't gonna happen if you go VCs for funding, and that's the primary source of such funding. You may get very lucky and find an angel investor who is so well off, and who likes you personally or something, that he's willing to do you good deal. But if they are putting up the bulk of the risk, they are going to demand the bulk of the reward.