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How would you proceed in this start up situation?

Been working on a startup I founded full time for 2 years. After a few pivots, beta launched our first product with about $30k in sales over a month. Then we launched the full product and we are not getting a ton of traction – no new customers yet (1.5 months). It is a very niche product with very very very needy customers, and the feedback from our beta has not been great – they either haven’t used the product, or haven’t been able to get it to work for their application. We have boot strapped until now, but have $600k in investment lined up.

The data I have now tells me this idea might not be working. I am also burned out, have no money, can’t see this product being a huge success, want to start a family, and I don’t really care for this product/problem anymore. On the other hand, I feel like passing up the opportunity to get investment in my company and give it a better shot at success is wasting a huge opportunity and wasting the 2 years of work I have put in. Will I ever have this chance again?? Should I just suck it up, take the money, and work my ass off?

So I am wondering what ya’ll think. Should I a) shut down, b) take investment and try to push through, c) go part time and take a break, or d) try to sell it off.

  • what is more important? Your feelings or commitment to succeed. If you just look at your feelings, your feelings keep on changing. Just keep working and you find success.

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  • I remember myself observing stats for days and days and predicting disaster. I think it’s good that you are realistic. I would focus on fixing things and get ideas how to overcome this. Get some great people on board to help you. There must be the way, otherwise how come 30k came in….

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  • I read your post many times, and I think the clue is there:

    “It is a very niche product with very very very needy customers, and the feedback from our beta has not been great – they either haven’t used the product, or haven’t been able to get it to work for their application. ”

    This sentence is a nonsense: “very very very needy customers” wouldn’t act like this. Obviously, you have a bad vision about how much your customers need your product, or how your product solves their problems. There are two choices: either your customers are not needy at all, they bought your beta because they had lots of money and thought you are a nice guy (ear: buying your product is like giving to charity business), either your product is so weak it can’t be an answer to a real need.

    Can you achieve product market fit ? You don’t know, and that’s why you feel lost. Talk to your customers. You must know what they expect. Why they paid your beta. Why they don’t go ahead with your product. Maybe they are not the same people buying and using ? (it’s a classic in corporate). You must answer those questions before deciding if you should stop right now or continue to build what could be a great product and a great company.

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  • I’d do “E” – take the money and then pivot into something you think is a better idea. Assuming you can still get the money with poor traction, once you have it you’ll have a lot of leverage to change directions. You just need to make the case for it. The difference is now you’ll have some cash to move faster.

    That all said, if you’re burned out a new startup isn’t probably the best thing to do.

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  • You have a similar situation to mine. I’ve decided to to use Ready Set Startup’s Startup GPS to identify areas to focus on. I’m still raising funds to use their product though.

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  • If you have investment lined up, you did $30k in sales from your beta – I would do e) take the money, make the product work! Sounds like you’re quitting instead, be fierce and confident.

    Nay Sayers are the best because 1) they expose all the holes that need to be fixed and 2) the fact that they giving feedback should be indication that there’s potential fo some sort of success.

    Just my 2 cents

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