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4 Comments

How do you justify your spending amount when starting a new product company?

How do you justify your spending amount when starting a new product company?

on March 27, 2019
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    I go as far as I can with my own sweat and blood. When something is going to save me weeks, if I can afford it, I wait a week or two. If I still need it, and can still afford it, I get it. So I’ve spent about $140 on my project so far, and don’t regret it.

  2. 1

    After doing 5 pivots in one year and wasting a lot of money for the wrong things, I now feel I am closer to the right path. I learned a lot and I have evidence to validate that. And also the faith that someday, it will pay off. :)

  3. 1

    In order to get my idea off the ground and make a functional product, it would be an estimate of $5k before I even contact manufacturers for parts + production. Having a family, I am worried I will make a grand financial mistake but I believe in my idea and the financial gain can also be significant.

    1. 1

      That's a serious amount of capital, but not unusual to build a prototype.

      Few questions:

      • Have you done the necessary homework first? ie market research, competitive analysis, etc.
      • Can you test demand in a cheaper way? ie building out landing pages and sending paid traffic, getting signed LOIs, etc
      • Can you find partners or investors to share the costs?

      If you've done the above and $5k is still the minimum you need, you have to reflect internally and ask whether you're ok taking the risk. At the very least you should be comfortable losing it all, as there is always a high likelihood of failure when it comes to building a startup.

      Best of luck!