Ask HN: What's the best way to spend 10k on a startup?

2 points by tristanisfeld 11 years ago | 4 comments

If you had gotten 10k for a startup, what do you think the best way to appropriate the money would be? My grandfather passed away, and left some money to all of the kids and grand kids, and that's my share. I need a new phone, since mine had seemed to have walked away, and I live in Vancouver, one of the most expensive cities to live. It is essentially a data company, and the product is saas. There are many ways to invest to maximize the use, including creating a sharespace office for other startups ultimately creating a free office space for myself and room for growth. I plan to crowd source later once the beta is ready in 3 months. We are also using the mean stack and aws. I would like to not mess up though, and spend it wisely. How would you invest? Or how did you invest? Any thoughts?

adventured 11 years ago |

Spend as little of it as possible.

Continue building your product. Focus on sales. With sales you'll never need to touch that $10k. The $10k is end of the world money, for either yourself or your new business.

Do not create the sharespace office. At best it's a ridiculous distraction from focusing on your product. At worst it'll wipe you out.

Get yourself a phone.

bbcbasic 11 years ago |

I go with the be lean advice. Spend as little as possible. Only spend money that is absolutely required to help you get the first sale.

The cellphone may or may not be in that category.

Other things may be a domain. For an MVP you can use a $1 for first year .info domain.

You don't need to pay for hosting, use Heroku or something on the free tier. Stationery and furniture can be free from friends / family that have too much. etc.

Live like a tramp.

Exception is if you are cashflow rich and time poor - i.e. you have a good job. Then you could invest into time saving tools and SaaS services (that you need to help you make the first sale more quickly). However such investments would still be a tiny fraction of the $10k. Actually it will be none of the $10k because you pay from your net salary.

penguinlinux 11 years ago |

Why do you need to spend it. Keep doing what you are doing. Be tight with that money and just keep working and being resourceful. Why do you feel a need to invest it?

ONLY use that money as the last resource.

coralreef 11 years ago |

Put the $10k into a savings account or S&P500 fund.

Continue your business as usual, until you actually know spending your money will net you a positive ROI.