I'd also recommend against getting a loan. Finding an investor might be more effort, but you really don't want the added pressure of possibly losing your personal assets as well as everything else if your business tanks.
Fair point, but we need to do something. I'd love any ideas- We're Mass based, and we've got the code about 80 percent done, depending on how you count. We've got users who are ready to pay when we launch, and we've got a decent potential for growth, but we know we're unlikely to be the next Google with this project.
In some ways, we're working to get the bugs out of our Engines, and working on our bona fides, so we can buy google with the proceeds from out NEXT project ;)
> We've got users who are ready to pay when we launch
How long (both money and time) are you from being able to launch? How many users are ready to pay and how much?
There are answers to those questions that imply that you can get money the money that you need now by offering said users a discount or longer subscription time if they pay now for your service when it's ready.
I know we could (They've offered), but I think it's a pretty terrible user experience.
Essentially, they'd be pre-ordering based on trust in us, with nothing to show for it. I'd be happy to give them an extended subscription, but I feel like it would feel cheap, and make us look bad, not to mention that it would be a pretty frustrating experience for them.
I agree with the idea, I just don't think it can be made to work in a classy way.
Why are you arguing with your customers about what they want?
That's a hard argument to make if you're correct, but you're not - they are. It's an incredible user experience. It lets them in on the excitement. It gives them a story to tell others. That's why they want in.
And no, it's not "cheap" to give them a discount, it's rewarding them for faith and it's fair. (You can think of it as interest if you'd like.) It's also fairly standard practice.
Do it right, and they'll be out there selling more "pre-release" subscriptions for you. Deliver, and they'll be your best salesfolk.
Of course, it is poor form to take their money if you're not going to deliver.