The Case for Building A Startup
- Is it (1) a Minimum Viable Product only to prove a point to an investor?
- Is it (2) already a semi feature-rich MVP?
- Have you (3) proven a proof of concept and want to have a solid architecture that holds a first stage of acquisition?
- Are you (4) already looking to scale a large application?
After defining the scope, you need to understand what will be your approach into getting the build done?
Outsource (1)
- Are you going to outsource this construction? You can do it via Odesk (oDesk, the world’s largest online workplace ) or Fiverr (Get everything you need starting at $5) and it’s potential the “lowest short term cost” you might have. Do this short term, because if not, you can get high Technical debt. Maybe great for a landing page, or some graphics, but I’d look closer before if a unique technical job that also poses the value of the company will be valued on Fiverr. I’d look for NDA’s in a cheap manner to get signed.
Contract (2)
- Are you hiring an agency or temporary contracts to build the startup? Although the cost is higher than above, the access to information and learning from the code that is delivered can be better quality.
Employees (3)
- Are you hiring an in-house technical team? Again, the cost increases as now salaries are in the table but all development is done internally, and control of iterations is not only faster but the learning comes right away.
Partners (4)
- Are you getting a technical co-founder/CTO? Cheapest short term, most expensive long term, and the best value for money. The deepest human, loyal and relational experience is in founding it with a business partner. It being valuable can also be hard to find because you require a high level of commitment and a break-up can destroy a business!
- Fortunately, co-founders are paid in equity so it’s cheaper in terms of instant physical money, but expensive long term in company shares.
- Unfortunately, can be the most expensive long term because if you get a very valuable business, the equity you granted becomes worth a lot so you paid a lot!
- It can be cheaper if your company fails. Any equity shared will then be worthless so you only had your time and opportunity cost.
Cost matrix:
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Author: Natu Myers (Website: Natumyers.com)
Natu is a cryptocurrency investor and software engineer who is experienced in building large scale applications. He built Innovator.Supply, an HR recruiting software for VR, AR, and chatbot enthusiasts. This was followed his other service, Hypetroop Market.
He has a fitness page on Instagram. Stemming from his time at Queen’s, he was a defensive lineman on the Queen’s Gaels football team. Being a multipotentialite, he finished a business incubator program after graduating, launched his own album on iTunes, and he stays up to date industry-penetrating software startups and crytocurrency investment methods.
