Planning Your Move from Day Job to Product

Episode 254 | Planning Your Move from Day Job to Product
Date: 2015-09-15
Link: Startups for the Rest of Us
 
Preparation:
Have a runway of some kind.
Make sure you don’t have a lot of debt when you are trying to start a business.
Debts basically weigh you down. It can make it much more difficult and stressful to start a business.
Figure out your number (the income you need to be able to quit your job).
Get buy in from other people in your life:
If you share finances with someone else that is somebody that needs to do the buy in.
Put together a spreadsheet with estimates of how long it is going to take to build what you need:
Most people don’t have any concept of how long it is going to take to build what they are building.
Excel has a function called Workday.
The further away you are from something the more difficult it is to estimate it.
Take any estimate you have and add an order of magnitude to it to make it accurate.
Have one person commit to you for paying for your product:
This is standard customer development.
This is getting a commitment and validating it up front.
This is before writing code.
Then get ten people to commit to paying you.
Try to create a demo or screenshot but all you need is a list of bullet points.
Start building your launch list.
Get that first paying customer:
This is when you have a beta version that does something and does it well enough that some person says they are willing to take a leap on you.
You’re not going to have a perfect product from day one. You want to start getting that feedback so you can have conversations around some of the deficiencies of the product.
Actually launch:
Launching is your third of the way point.
Do not comp the app to everybody on your interest list.
Get that first customer post launch from a cold lead:
This is where you are working towards your “quit the job” number.
You are doing things that aren’t repeatable but you’re trying to figure out how to make them repeatable.
Hitting 50% of your income:
This is where your net profits are half of your number needed to quit your job.
Hitting that full income number needed to quit your job:
Decimate your expenses.
You’re not going to have enough time before you hit your income.
This is where your runway becomes super important.