

Ask HN: Killer idea, no cash to build an MVP, what to do? - joshmn

Besides the obvious "ask friends, ask family" what would you do?<p>I'm asking in part because I have a killer idea for a subscription-based model in a multi-billion dollar industry. It would be the only player in this industry, and the model has proven itself over and over across dozens of different industries.<p>I've had my share of success from an early age as an entrepreneur, but they have all been software or web plays. This is different, and my network of people aren't interested in this sort of thing.<p>I'm out of ideas.
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ignostic
Is this software? Can you build it yourself? What kind of investment would be
needed? Is your credit good enough that you can get a personal loan? Would it
require more money than that?

Your other option, of course, is to seek angel investors and VCs. You may have
some success there if you have some knowledge of the industry or product that
they can't immediately duplicate. If you choose this route, be careful how you
word this:

 _"It would be the only player in this industry"_

That's usually a big red flag that the start-up doesn't know who their
competition is. Adding "subscription-based" to the front doesn't instantly
mean you are the only one in your industry.

~~~
persona
Being the only one can also mean there is no market... like being the only
company to offer flood insurance on the Sahara...

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Felix21
Your question is really vague as you didn't give enough details about what
you're building or what you'll like o achieve. Still, i'll try to answer.

You need:

0\. Can you do it manually? Without any code can you provide this service? If
yes, start here.*

1\. Feedback - this is not easy without a product but draw something, sketch
something or create a model in autocad. Show people and talk to them about how
you plan on making their lives easier with it... Are they excited?

2\. Product - if its a physical product, go and find money an then post again.

If its software, build a website, create a mockup of your app and start
selling pre orders.

3\. Reduce your product - Kill everything else except the core feature that
makes you awesome. That's your MVP. I'm serious, just ONE feature.

4\. Hire a developer - or start looking for a tech-cofounder. you should learn
to code, but you should also build your business while you do it. Your pre-
orders will make developers more welcome to your approach.

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petermelias
Even if it's not software, you should learn about the relevant tech (assuming
there is some). You'll have an easier time hiring talent later, you'll need
less upfront costs, and investors like co-founders who have a good
understanding of the technical aspects of the business.

If it's tech, but rather material cost, then crowdfunding is a good bet AFTER
you have locked down a good marketing plan and secured some early traction in
the form signups / commitments.

You can do tests and "fake door" type experiments to get user signups, or even
commitments from potential customers to further validate your understanding of
the model and relevant addressable market.

Once you've gone through that testing and validation process, try building out
a small MVP yourself, or use what traction you mustered to try and recruit an
equity partner with the relevant experience / network / talent necessary
(and/or go get some angel money).

good luck

~~~
joshmn
There is some relevant tech that I'll have to look through. A lot of logistics
has to happen for everything to go smoothly. And, like always, it's better to
do it right the first time rather than playing catchup when money's knocking
at the door.

I like this fake door idea. Good words, thanks.

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exnav29
I would agree with the other comments so far.

If your idea is in fact without competition then include who are possible
competitors no matter how slight. To not have any competition is a HUGE red
flag. By including even the slightest of competition then you are showing that
you have done your research. Also, make sure you have a rock solid way of
explaining how long it will take for investors to get their money back.

Contact your group of contacts and ask them why they do not want to back you.
You may be surprised at their responses. But take their advice and alleviate
their concerns. Because their concerns will be the same as potential
investors.

Find a way of doing it on a smaller scale that you can afford to finance
yourself. You will need a proof of concept anyway so start working on that.
People are more likely to invest in things they can actually see not ideas
alone.

~~~
joshmn
I should have mentioned that this plays on the Netflix model. And, with that,
well, how long did it take before we had DVDs by mail? A longggggggg time. So
yeah, there's the typical retail outlet for this stuff, you're right. And this
market specifically is ginormous and will _always_ be there. But there's
currently no member of this market that's decided to go along with the Netflix
model. And, at least to me, I see that as a huge opportunity.

~~~
jpeg_hero
Netflix for power tools?

~~~
sharemywin
netflix for baby clothes. every mo. send old box back get a new box.

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OnyeaboAduba
Im guessing you should look locally first. In my town just had a tech week
where alot of local investment firms where eager to fund some fresh ideas as
long as there was some meat behind it e.g other funding , site developed , or
in your case a tested entrepreneur. Start there S.C.O.R.E is also a good
source as well to look at

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dylanhassinger
downsize the idea

upsize your skills

start blogging and beta signups

try and find a way to presell it

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ibudiallo
If you have no competitors, are you sure there is a market for it ?

Do your research and since you haven't said much about you will be doing I can
only tell you to find out if your are going to need the amazon model or the
Ben & jerry model:

<http://www.joelonsoftware.com/articles/fog0000000056.html>

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chuhnk
Why do you need cash for the MVP? Is it a physical product? Do you have to
hire someone to build it?

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joshmn
Gotta stock the warehouse shelves somehow.

~~~
bmelton
Not necessarily. If, by "Netflix model", you mean rental, then you're probably
right. If instead you actually mean purchase, then you might be able to get
away with presales and drop-shipping.

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robodale
So, you have an idea for a killer app. No way to pay a developer. If the idea
is all you are bringing to the table, then you have nothing to offer.

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orangethirty
How much do you need?

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sahil_videology
Why are you so vague about this killer idea?

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shail
Is it related to medical field?

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kimura
crowd-founding is your friend.

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alanchavez
Run a validation test.

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mtext
sell your body.

