Starting budget: €12,782
Usually the budget of a startup is based on the numbers in the business plan.
Following the entrepreneur bible, I tried to write a sample business plan which aimed to help me clearing my idea.
And it helped me realize the fact that all my financial numbers about my potential incomes are based on assumptions only…
Maybe I’m doing the business plan wrong or maybe it is impossible go get realistic numbers at the beginning of something I’m are not quite sure about… Because I really don’t know if companies are going to buy my products.
So, I decided to do the financing in the opposite way. Instead of how much I will need, I’m starting with – how much I have. After some planning of my personal budget I decided that the biggest amount of money I can invest (lose) is 25 000 BGN (~ 12,782 Euro). It is not a big amount in the context of starting a new company, but I’ll need to fit in it.
Let’s see 🙂
PS: If you are curious how I have these “free” 25 000 BGN (12,782 Euro), read my blog post “How to get money for my ideas”.
Spending the budget
I’m following the “Customer Development Model” described in the book “The Four Steps to the Epiphany”.
I iterate between “Customer Discovery” and “Customer Validation” steps with each of my ideas.
This allows me to delay the moment to hire people, rent an office space, buy employee laptops, etc, till I have proven the product has more then just ‘potential’.
The approach also allows me to keep the budget and spending money only the most necessary things.