How to find money for development
Hey,
I have at least 4 customers ready to pay for the SaaS product I plan to integrate.
But now I'm faced with a major issue: the deployment of the servers, which is rather extensive. Just for servers, I'll need at least $10,000 every month.
My income does not allow me to pay $120,000 a year for server costs alone.
How can I get the funds to start building it right away?
Should I formally establish a "inc" business and incur debt?
Or maybe I should simply apply for grants.
or neither, or both.
The team is not presently interested in seeking investors, and I need money for investments quickly.
Thanks
You definitely don’t need to set up servers just to handle 4 customers
How did you come to the 10,000 figure?
Most Saas products are close to free when you're talking about maintaining 4 customers.
Also AWS and other clouds offer free plans for startups.
We need over 100 VPS, and we also need to buy a big server, because the server will work with at least 40% of all email globally.
I'm pretty puzzled here as well why you need 100 servers from the get go with the context you've given so far. If you're looking to validate your idea, personally I'd start with a small MVP to figure out if the idea is working or not and if you can determine a business model/pricing strategy. From there scale as your clientele grows.
I'm also not sure how your pricing model looks like and what the customers are going to end up paying. But perhaps getting paid up-front could help cover part of cost? You can always take out a loan, but you'll have to determined you're on the right track.
Its hard to understand without more context but do you really need to go that big for the initial version?
Can you deliver something smaller in the meantime. See if the clients actually pay for it.
40% of all global email seems like a big figure to put on yourself. I can't imagine building something that handles 40% of global email from day one.
No disrespect to you but I've seen people think their products will handle a ton of traffic or whatever but that not being the case for years really. Unless your client is Microsoft or Google, I would see if you really need to handle that scale.
If you really have that amount of traffic, then charge your clients a ton of money. 10,000 a month is really nothing to a big company if you're fixing an important problem.