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I am not incorporated anywhere. :D I need at least $25,000 to push this startup to it's real potential. It will give me 18 months, a point I would be able to m
by ahmedaly 7y ago
I am not incorporated anywhere. :D
I need at least $25,000 to push this startup to it's real potential.
It will give me 18 months, a point I would be able to monetize comfortably without worrying about churn rate.
After 18 months, and after burning $25,000... this is the point I would reach the break even point, and I might get profitable as well. It's well calculated!
Ecommerce is booming in the middle east!
I am providing long free trial - up to 1 year!
Still my sellers/users know very well they will be charged after a trial ends.
I have 10+ paying customers.
It won't work if I get a job. I am working alone on this, and I have to work full time on this. otherwise I would not be able to achieve such progress!
I do everything! I code, I sell, I provide customer service!
- jacquesm 7y agoOk. So you need to move up your timetable. Contact your customers, explain the situation. If the service is as valuable to them as you say it is then they will be happy to pay. $25000 over 18 months works out to a shade under $1400/month. Divided by 300 active users works out to less than $5 / month for each. Call it $10 to build in some safety. Let them know that not charging for the product any longer is no longer an option, but that because they are the first 300 they will get a 40% discount on what everybody else will be paying from now on: $25. If what you say is true then your problems will be solved, if you are making an error of assumption then it will surface and maybe you will be able to address it, or maybe not and then you will have the answer to your question. Best of luck!
- ahmedaly 7y agoyes my numbers are real. No assumptions. All my customers know they will pay at some point. I like your approach and I plan to do it as a last resort. my point is that I expect at least 30% churn rate when I start charging my customers. So I prefer to reach 1000 or 1500 sellers signups before starting charging. $25 is too much for an emerging market like Egypt. I prefer to charge $5 or $6.
- jacquesm 7y ago> my point is that I expect at least 30% churn rate when I start charging my customers. That's a huge assumption. It might be 0% it might be 99.9%. Answering that question will give you a much better idea whether or not you should shut down your startup. Willingness and ability to pay for your product are the most important bits. The rest is secondary.