

Ask HN: How much have you spent on your 'bootstrapped' startup - leslyn

Startup community: I am wondering how much of a budget is considered 'bootstrapped'? And, I am curious to know how much personal capital (or debt) it took to generate something profitable. Of course I understand that the product/service can make all the difference in the world but your experience and numbers will still offer a valuable perspective.<p>I know there are no guarantees and that past performance is not indicative of future results! I also realize that everyone's risk tolerance starting financial situation is different. Just laying that out so that the comments can focus on individual experiences.<p>Thanks!
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zeynalov
I copied this info from our bootstrapped startup annual report. This info
covers development and first month revenues.

Money and hours spent:

10$ + 2 days - domain+naming

9$/m - hosting

0$ - 1 week - webdesign (~ 3000$ value)

0$ - 1 day - front-end development (~ 300$ value)

0$ - 1 week - development (~ 1500$ value)

0$ - 6 days - copy writing (~ 500$ value)

\- Facebook official page created 05.05.2011

\- Money and hours spent on advertising : ~ 200 $ + 1 month work (~ 4000$
value)

\- Over 800 emails received and replied

\- 12 paying costumers. (450x12=5400 euro)

\- 3 refund (250x3=750 euro)

\- Profit - 4650 euro

P.S. Actually I should spend 10000$ for the launch, but because I did
everything myself, I didn't spend so much money. I spent too much time
learning graphic design, marketing, seo and my expertise on my startup
subject. And some coding skills. But because all of them were already familiar
to me as a hobby, I dont't count the time spent on learning developing my
startup.

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cdvonstinkpot
I'm starting a sound reinforcement company- for those who don't know what that
is, we rent the sound systems that are used at concert events to promoters of
such events.

It's an extremely capital-intensive endeavour, and alot's gone into it. I
recently inherited 6 digits after both my parents died, and I figured it was a
better idea to try to build a money making machine than to just live off it
for as long as I could, so I created an LLC, and started building a sound
system.

So far after 2 years, I'm just over halfway through building the sound system,
and a little less than halfway through building the backoffice IT
infrastructure. And I've already spent $160k!

I'm working with a SCORE counselor, and intend to get an SBA loan to cover
what I need to finish the sound rig- the IT's in a state where it's just
enough to get by until I make some money, so I don't need to spend anymore on
that thank goodness.

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ohashi
I don't meet your profitable metric yet (hell, I haven't even launched it
yet), but I've been working for a year.

The biggest question is what do you consider spent on the startup? Do living
costs count or just direct expenses?

I'd say most of the cost has definitely been in the living costs. My total
bill for direct costs (not living costs) so far is probably under <5k.

~~~
leslyn
Thanks. I did mean above and beyond living costs; expenses such as hosting,
legal, advertising, etc. Next question - how much money AFTER launch will you
be committing to your startup and what is the amount (in your mind) that you
see yourself spending in order to make it happen?

~~~
ohashi
As much as I can afford. Honestly, that's the best answer I've got for you. If
I need money for something and don't have enough, I will earn it.

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nalidixic
I was able to profitably launch <http://www.committeebox.com> for around 500
dollars. That cost includes hosting and such while testing. If I counted all
the hours that I've put in we'd have a whole different story :P

What have you been working on for a year without launching?

~~~
leslyn
Nalidxic: I really like the simplicity and design of your site - it is really
inviting! How have you advertised this?

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ecaroth
Been working on FitBolt (fitbolt.com) for about a year, spent ~$200 setting up
credit card processing & recurring payments, $50 on business cards, and about
$150 on legal fees. LOTS of optimization has kept my appengine costs well
within the free quotas, and everything else has only been my time.

~~~
revorad
Filbolt looks interesting. I know it's not nice to get unwarranted design
criticism, but I found the text on your site quite hard to read. You should
consider making the text of the main value proposition (The problem and The
solution) much bigger and more prominent. Right now, it's just lost in a sea
of other similar looking text.

~~~
leslyn
I just wanted to add (I know you didn't ask) but I agree that the white text
in the bright yellow is hard to read. I think the suggestion to make that
bigger and more prominent will be helpful!

~~~
ecaroth
Thanks for the feedback! I definitely am going to take a hard look at
modifying the design on the main page, including making the main point more
prominent, visible, and easy to read!

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AznHisoka
I've spent over $20,000 of my own money and have yet to launched officially.
I'm able to afford it because of a lifestyle business I set up years ago (that
has closed down since).

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dnpmonitor
This is interesting, does it count if you're bootstrapping looking to go on to
raise VC? As I'm 'bootstrapping' now?

~~~
leslyn
Sure, the question is still valid. How much have you spent, or are you willing
to spend to get you to the point that an investor will be interested in
talking to you? (assuming that the profits are not funding the growth that an
investor will be interested in)

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warehouse
I spent $5k and it failed.

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gdhillon
About $3K cash and about 100+ man hours.

