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I have $25,000 cash that I can risk losing - what is the best way to leverage that to make a profitable product?

My trouble is that there is an infinite pool of possibilities (supplement company, buying a microSaaS, starting a small niche design agency, etc) but I'd love to broaden my perspective. Looking to have a profitable self-sustaining project within 6 months that generates cash flow monthly, and can comfortably risk losing the $25k so willing to take some long shots. What would you recommend to maximize chances of success (or maximize learning along the way)?

on December 28, 2023
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    You really need to look at what you have to offer rather than what's on offer.

  2. 1

    Try to get out of the mindset of what you are going to spend. There are many good guides on how to find a pain point/market need. I would actually run that process objectively. Find something that people seems to already bee looking for.

    While you're doing that, put the $$ into a savings account earning 5%+

    I have 50 ideas that I'm not doing. If you want me to discuss ideas, just dm me, I'm happy to chat.

    1. 1

      Yeah, this answer resonates most with me. I just didn't know if having the cash to spend on any resources can speed up the learning in some way. Thanks!

  3. 1

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    If you want a solid foundation given your experience, you might like to think what you can do best for your future!

    1. 1

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  4. 1

    Buy a business and take the profits to do something really cool. That's my plan. There's so many boomers selling their businesses right now at a great price because they want to retire, but no one wants their business.

    You only need 10% downpayment for SBA loans, so you could get a 250,000 business which is probably selling at 2-4x profit. If you don't improve the business at all, you're already ahead because the loans are usually 10 year increments, so that's 67k-125k in profit minus 25k for the loan.

    You now have 42k-100k to do something awesome with and you have no fear of losing it because it'll always be there next year (hopefully).

    All these ideas in here are cool, but they'd be even cooler with more money coming in constantly. Having someone else motivated to grow and take care of your business is merely an engineering problem, as far as I see it. It's a detour and definitely lame by comparison, but if you have business sense - and you probably do if you're on here and have 25k laying around - you should be able to take over a business from a technologically illiterate boomer who lost their passion 10+ years ago no problem.

    I've worked for a lot of these people when I was younger, and I know from experience that most of their work they do day-to-day could be automated if they weren't stuck in ye olden times.

    It's certainly a much simpler and easier way to ensure ongoing financial stability than employment/freelancing which is what most of us have to do to fund our real work.

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      Any good tips for finding a reasonale deal? It seems a lot of the businesses available online are questionable (the financials, how long they've been around).

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        Yeah, my old Tinder method: swipe right as fast as you can, and filter out your matches.

        That or go through the trouble of figuring out how to hire interns, motivate them properly, give them work to do, and manage it all.

        Getting the business is the hard part. The easy part is they already made it profitable. Financial statements are easy: revenue - profit relative to growth. Anything else is a scam.

  5. 1

    I would recommend a digital blockchain, saas, education platform that will teach other the things they want to learn, it could be anything that has more customer and buyers, or should I say, consumers in today's society.

  6. 1

    Research extensively to identify an underserved market, then develop a minimum viable product (MVP) to validate its demand.

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      This seems to be the most consistent answer - i.e the money doesn't give you any advantage or leg up in this process.

  7. 1

    I would say start a design agency, instead of doing the designs by yourself, you can hire talented designers and you focus on making leads.

  8. 1

    You can build a company that owns a collection of MicroSaaS products. But while building a company, money alone doesn't solve all the problems.

    There is a need for founder-product fit. So figure out what kind of business suits you. What skills that you already have can be used in the company?

    Here is my LinkedIn profile, if interested we can discuss more https://www.linkedin.com/in/sachingk/

  9. 1

    Heyy, if you can risk this money in my opinion the most profitable business at the moment is Micro-Systems (or how you said, MicroSaas).

    It's cheaper than ever to create and launch it. And also a big opportunity because people is looking for new software solutions every single day in their devices (openAI is here to prove it).

    So with this budget, you can hire any low/no-code developer to create a medium/high competitive MVP idea at this 6 months timesheet, main while we are in the boom of AIs and micro-automations, so you could think in a lot of cool stuffs to play with and test it.

    With other part of money, you can save it for creating content and advertising (social, blogs, vlogs etc) since you have your first product ready to launch. In your case, I would follow the 30% rule... " Is my software idea solving a complex problem? "

    If your answer is no: 30% for development ↔ 70% for marketing / If your answer is yes: 70% for product development ↔ 30% for marketing

    The problem is to find the right market fit and create the right solution. But if you find it, the possibility to scale it and reach very high profits is huge.

    Anyway, it's a risk product as anyother one but also a big opportunity to win a huge money with low budgets.

    Other tip: If you just want to make some quick money - make it free for use, get some users and sell it for someone else (MicroAcquire is a nice place to do that).

  10. 1

    A ton of customer development + MVPs

  11. 0

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