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Startups don't cost anything, unless you make them so. Chasing scale for the sake of scale is stupid. If you're actually selling something that's not fluff you get a couple of customers, improve your product then roll out when you need to.

I'm running a startup right now. The first year cost 0 for me and my partner (besides gas). All the engineering work was done on my gaming PC and the feedback from potential clients was gathered by my partner.

After we got something going, it cost us about 2k for servers (256GB RAM, 50TB storage, 32 CPU cores total) and around 4-5k for graphical product and website design in the next year.

If we're lucky, we're getting a contract this year netting us about 100k/yearly revenue, which will cover all costs + good wages (we were on no/minimal for two years) + another engineer (bus factor of 1 is not fun).

Disclaimer: What I wrote applies to software B2B startups, hardware startups almost necessarily cost a lot, B2C may be harder, but still not that hard if you're not selling fluff.



The biggest cost is your time. You've valued it at 0...

If the startup idea requires someone (or more than one person) to work on it full time in order to succeed then that's not a valuation that is practical.


It's better to say: The biggest investment is your time.

Sweat = Equity


Sweat * leverage = equity.

Time used wisely is an investment, but time used poorly is an expense.

Being able to tell the difference is key.


That’s only a practical way to think about it if you have enough other income to cover your expenditure. Equity doesn’t pay your rent.


How did you pay your rent if you didn't give yourself a salary?


I know it's mostly unheard of in America, but some people have a thing called "savings." Others are even further ahead and have "investments."


I had a full time job on the side, plus I lived with my parents.


> plus I lived with my parents.

So you were paying for it, just in a different way.




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