What would Cash do? Well there is not a direct answer because every instance has its own circumstances. I can not give a one size fits all answer. But in a small business you have to remain small as you can to save yourself from burnout and failure.The mobile app development product or industry is no different than a tangible small business. The key to keep in mind is profits and losses money in, money out. TWO major problems I have seen in my experience is that if the visionary is not a mobile app developer the cost mounts before you can see sales. The second problem is you must find investors that will be willing to fund your operation when you can not afford it yourself. This means the money you accepts come at a cost, a small amount, for a small piece of the company. Don't worry this is better than a loan on a company that you haven't made profitable in some cases. But anyway if you have predicted the development stages of your Mobile App correctly, you will be able to raise the full amount to create the app hire the team and market the company in a timely manner.
Payroll really depends on how well you understand your company's goals and needs. I do not recommend hiring full time employee before the app is developed. If you are not the mobile app developer, business strategies or brand developer for your own company I recommend outsourcing on an as needed basis. Now let's discuss how the owners pay themselves. If you do not provide app development, you should be heavily involved in the development of your brand strategy, and marketing strategies. If you are new to business and do not understand how to create these things outsource them. If you do not have a full time role that you understand how to execute do not pay yourself to host senseless meetings or sitting around searching for things to do. At the beginning there is nothing for a founder with limited or no skills to do. So continue to work at your main job or freelance to bring your income in. The average App takes 18wks to produce do not rob yourself blind on payroll.
I would not hire any team members until there is a fully agreed upon strategy, job duties and processes in place. This will help you lead better and hit your targeted goal. You should not hire people who has nothing to do. Don't make up work. Don't hire because you're lonely and need friends or a team to feel successful. You are not successful, investment from investors is not success so act like you know that. Let's get back to the vision the purpose and sell products the or clients actually need.
If you must pay yourself before you have developed a product be willing to take a loss pay the bare minimum. Do not make promise make sacrifice. Live low, live with family or friends. Live off one income, cut your expenses. Ride a bike to work, eat breakfast at home and take lunch to work. But whatever you do, do not live off your investment most startups burn out all their investment in payroll and developing apps that nobody will use or pay for.
I have so much more to say but I must end this week's blog. For more information watch the video below click here. If you need any branding, mobile app development processes, business model development and strategy contact me at www.CashParish.education. See ya next week.