Building an Online Platform with Less Investment & Technical Skills
Let’s say you are a sales guy without technological knowledge whatsoever. But you had this great idea for an online platform. Of course you can hire tech guys with share option to optimize his performance. Find this partner via community events or freelancing platform, then create a Minimum Viable Product (MVP) to test the market.
Serial entrepreneur Pedro Mouta told that with these schemes, people can actually start a company with a minimum amount of upfront investment, and sometimes with barely any money at all.
First of all, save 95% upfront investment by adopting “Lean” mentality is a big deal. You have to think unorthodoxly and break with some of the standard conceptions that you have. It requires you to question the way you’re thinking of building the business and becoming obsessed with reducing the investment required by approximately 95%. You should always validate and research your idea before you actually start developing it, otherwise, you might waste months of your time in creating something that no one wants.
Finding an equity partner with technical knowledge is the next step. You might to make sure that your partner also commited to the business. Giving the same equity that you have is the best way to show how much you value his contribution and that his job’s quality will highly impact the likelihood of success. It also shows that you’re willing to trust the developer and that his role is as important as yours.
And then come to the most popular reason not-to-starting-a-business; how to fund your business. Go find an angel funding. They know better about how digital startup works without pushing you about how to return their money ASAP. Kindly take a note that never accept to give more than 20% (max. 25%) of equity, or you might screw the cap table for future investors. Just like your potential co-founders, these angel investors also can be easily found in startup events, incubators/accelerators, etc.