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I'd flip things around. What if the idea is a flop and you spend ~1k talking to a lawyer, setting up all these accounts, and spending a month of effort on this
by WestCoastJustin 10y ago
I'd flip things around. What if the idea is a flop and you spend ~1k talking to a lawyer, setting up all these accounts, and spending a month of effort on this work. Are you okay with that? Like, if you are okay with only getting $15 bucks for this then do it. But, I'd probably wager not, if you don't have some sense the idea is going to take off. On the other side, what if there is demand and then you cannot accept revenue ASAP. I've had that, and it really sucks, you need to pretty much drop everything and implement a cash register, and this takes time (set up company, get bank account, get stripe working, figure out pricing, plans, etc). So, I guess it really depends on if you think there will be demand, it's probably worth spending the time and money to get it done. This is a gamble though. Sorry, there isn't really a one size fits all here, it is highly dependant on your confidence that this will work. If you think it will, then invest the time.
You haven't really said if this is an on-line product or something you can go out and ask people about. Patio11 had a pretty good comment (cannot find it now) about mocking things up on an iPad and then going and asking people. Like have screenshots, flip through it with them, and ask if they would pay for something like that. It sounds like you are firmly in this area of wanting to know if it's a good idea people will pay something for. So, you probably don't want to create a company yet. Again, just guessing here. Providing more info will greatly help in giving advice.
- deleted 10y ago[deleted]
- trainiac 10y agoThanks! That makes a lot of sense. This is intended to be an online service geared towards a humanitarian cause. Your reference about mocking things up and asking people is a really good one. I've been validating the idea by asking people questions through interviews and surveys and so far I have a good feeling about it. I'd be doing mockup validations too but as this is a service and not a product I may defer it for a bit (or not). I'm with you on not wanting to create a company yet, but I wanted to know how practical is it to accept money into one's personal account? I obviously don't want to risk my personal assets but I also realize creating a company could be unnecessary hassle/expense. I'm trying to sort that confusion.
- WestCoastJustin 10y agoI'd be extremely careful about mixing your personal accounts with any potential company funds. It will become a nightmare to keep things straight. Save yourself and just create a dedicated account. As, I think you'd be opening yourself up to all kinds of hurt if you attempt something like that.
- trainiac 10y agoThanks! That's what I fear. When you say dedicated account, do you mean just another personal account? Or a business account (hence setup company)?
- jtrtoo 10y agoYou do not need to incorporate or form an LLC to establish a business account. A sole proprietorship is just doing business as yourself. It's particularly easy if you have your own name in the business name. No paperwork/DBA publishing required for the bank. (For that matter, you don't even need a business account... Just an account that is dedicated to your business transactions.)
- icedchai 10y agoI dump money from my consulting business and iphone apps directly into my personal account. It makes tracking expenses slightly more painful.