Should I raise money?
Depends. If you know that you need capital to take your idea to the next level, then it may be time to consider raising money. If you are trying to raise capital to pay the founders or to hire on a sales guy, then probably not.
It’s good practice to keep expenses low and avoid raising money for as long as possible, but you will want to begin looking for capital when you are down to 12-18 months of runway. When you decide its time to begin raising money, you will want to start talking to investors early. The cycle of raising capital often takes longer than entrepreneurs think.
How do I know if my idea is good?
Talk to your customers. Are you making sales? Are those customers happy with the value you are providing? This ties back to Traction and Validation. If you have a validated concept and are building traction, odds are that your idea has some legs.
How do I find a co-founder?
It’s hard. Many founders are people who have been friends for some time, or went to school together. You can also look in common interest groups and meetups for a founder, or ask your friends for introductions. There is no “co-founder store” or place to go to just find a co-founder, but if you talk to people, put yourself and your idea out there and show passion, you will find someone.
How much should I pay myself?
As little as you can to get by. Your startups resources are precious and likely to be slim. You want to squeeze as much value out of them as possible, and that means taking a personal pay cut. Investors who have given you capital to work on your idea also don’t want to see you handle their money irresponsibly by taking an unreasonable share.
That said, investors also recognize that the best opportunity for the business to succeed and for them to make a return on investment, you need to be committed to the business. That means you do need to pay yourself enough money to survive and work on the business without taking on the distraction of other jobs and responsibilities.
What incubator should I apply to?
There are tons of incubators sprouting up around the world. We can’t tell you which incubator is best for you, because a huge part of the incubation process is mentoring. You should find the incubator that offers the best mentors for your startup’s industry and try to get in there. Location also plays a large part in the decision process.
