How to join a Start Up?

[lucas_axe]

My friend is building a SaaS platform and wants me to handle the Project/Product Management side while she focuses on the technical functionality aspects.

An external development team will build the platform.

She has been transparent that her budget is limited and probably can't match my normal rate/salary, but she's open to:

• Paying what she can based on what I'd charge.
• Creating some type of formal agreement for me to join her.
• Listening to any suggestions I have to make this mutually beneficial.

What options should I consider for this arrangement please? I'd appreciate hearing from anyone who's been in similar situations.

 

[NickGrogan]

Whos going to sell it?

If she is focusing on technical functionality, what is the dev team who are building the platform doing and vice versa?

 

[fisicx]

If development is being done externally and you are project managing what exactly is your friend doing?

The elephant in the room is marketing. This is far more important to the project than the actual product. Who is doing all the market research and pre sales work? How is you friend going to pay for marketing?

If you friend can’t afford your services they can’t afford to launch and support the product. You are best to walk away from this one.

 

[lucas_axe]

If development is being done externally and you are project managing what exactly is your friend doing?

The elephant in the room is marketing. This is far more important to the project than the actual product. Who is doing all the market research and pre sales work? How is you friend going to pay for marketing?

If you friend can’t afford your services they can’t afford to launch and support the product. You are best to walk away from this one.

She will be doing the marketing and sales, she's got some initial interests, albeit in very early stages so understandable that nothing's guaranteed.

She also has a full-time job so that's how she'd be affording the launch

From my side, again this wouldn't be a full time position, rather a side gig so another reason why I'm open to the collaboration and reduced rate

 

[lucas_axe]

Whos going to sell it?

If she is focusing on technical functionality, what is the dev team who are building the platform doing and vice versa?

She's going to sell it

I would be overseeing the delivery to keep track and dev team actually building the product

 

[fisicx]

How will you benefit from being part of the project? What financial rewards are you expecting?

Marketing the product is going to be expensive. Supporting the product is going to be expensive. It could be years before there is any ROI.

Don’t want to be all doom and gloom but without doing the necessary market research the chances to success are slim. And market research isn’t cheap.

 

[Mark T Jones]

The questions you are being asked are valid and relevant - they boil down to 'what's the business behind the idea?' - they key thing that any investor will want to know. (Watch a few episodes of Dragons Den - section 3 is always about the numbers/the business)

Essentially you are putting in sweat equity - to get any appreciation of value, you have to understand the business

1. Set your rate at market rate - then offset a portion (that you can afford to risk) to 'buy' shares against pre-agreed landmarks.

Don't kid yourself, statistically you are likely to end up with a portion of nothing - but there might be a nice pay day.

 

[Porky]

I just love this thread, perfectly illustrates all the WFH lot using their employers time and money building side hussles and totally clueless about business thinking they can knock up a software product and make a fortune with it.

Sorry, this won't be the reply you think you want but it's tough love. Don't waste your time on this!

I can tell you Straight, from someone with a LOT of experience in SAAS unless she has a massive sales and marketing budget her chances of success are zero.

The build, onboarding, support, hosting whilst a cost are the easy bits. Finding clients and getting them to sign up and part with cash (not to mention the current climate) is the challenge. Sales, Sales, Sales is what counts, everything else is secondary and if you are talking about a new SAAS product with zero traction, new to market that needs to get a message out, without a massive investment she's toast. Sorry but it's how it is.