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My advice: don't pre-sell anything unless a) it's simply to get a public beta in the hands of customers that want/need to use it right away, and b) even then, h
by TimJYoung 8y ago
My advice: don't pre-sell anything unless a) it's simply to get a public beta in the hands of customers that want/need to use it right away, and b) even then, have a practical and do-able timeline in place for finishing any documentation, etc. that needs to be done for the final, polished product. And, above all else, do not spend the money - just put it in an escrow account or something similar.
I've been involved as a consultant with a company that took deposit money from customers, used the money to fund development of the software, and didn't deliver. It's surprisingly easy to screw up, so don't put yourself in that position. It's extremely stressful for the principals in the company, as well as the engineers tasked with the herculean task of trying to create something lasting while under the gun.
- tixocloud 8y agoThanks. The challenge I have is that we don’t have enough runway for our engineers and hoping to secure funds either through a paid POC or use the deposit to raise funds. Any thoughts?
- TimJYoung 8y agoIs there any chance that the engineers can get some "sweat equity" in the company ? It really does align the interests of the engineers with the outcome of the company, and can be a positive if it helps you get through this existential crisis (100% of zero is still zero). This is exactly what I tried, in vain, to convince the owner of the company (that I described in my original reply) to do. I also recommended that they let any non-essential personnel go and stick with the bare minimum core that they needed to actually finish the product. And yes, it will take longer to get the product done, but unless you're doing a product that is easily replicated (doubtful, if it's enterprise), then it really doesn't matter. Good enterprise software typically lasts for decades, not years.