This update seems to be a tough one, a depressing one. We are frustrated, and this is undoubtedly a devastating time for most small businesses. An epoche that nothing but uncertainty surrounded us. We had a meeting this morning, and I’m going to discuss the most notable outcome of it here.
As much as we want to trick ourselves that we can test this or that part of the system until pandemic restrictions loosen a bit, we can’t ignore that it is, in fact, a horrible time to release/test the app. I tried my best in this note to elaborate on our reasoning.
The Problem
Our business model, more than any conceptual or logistical aspect, is affected by this pandemic. That is, we cannot leverage our revenue streams until the situation is resolved. Also, on the logistics, some features in the app cannot be used at all under the current circumstances. I cannot go any deeper on this without disclosing our exact business model.
One of the early thoughts on how to embrace this novel situation was to bend here and there. That is, to change that procedure, add x, and y features as the app F did, but we don’t believe it’s the right move. It would change the platform’s identity and mission. It would make it just “another social media”.
Scaling Fast is a MUST
The platform is categorized under social media, and things there can be reverse-engineered in a split second by the competition. Most of our unique designs and procedures are patented. Still, when we go to full production, we need to grow and scale fast to truly protect our intellectual properties. That means our expenses will spike. At the same time, we cannot activate most of our revenue streams because of the current pandemic restrictions.
Therefore, if we start this, there is a good chance that we will run out of money before being able to utilize our business model. We’re a small startup company and honestly cannot risk destroying what we’ve worked many days and nights for.
Fundraising
Well, one might argue that we should start our next round of fundraising to be able to sustain the project’s maintenance and development. Again as you can do the math yourself, the timing probably couldn’t be worse.
It’s really straightforward when we put our emotions and excitement away: It’s not wise for us to dive into the ocean when it’s stormy. And it would be unreasonable to expect anyone else to do so as well. It’s also a shame that no one knows when it will be over, or if it will be at all. Nothing during the last four months makes this prediction any easier or more reliable.
Latest Assessment
I’ll make it quick and easy but cannot do anything about its bitterness:
Although we’d decided to perform a private beta testing, and discussed it here and here, we changed our mind.
We regret to say that we have to call-off the beta testing based on our latest assessment of this evolving pandemic situation.
We’re living in one of the most uncertain epochs of our business and perhaps personal lives. We think it’s normal that we revise our decisions based on how the situation evolves and society adapts. We cannot let our excitement or frustration pushes us towards making a bad call, ruining all our efforts. We prefer to take our chances and wait for a better opportunity, even if it takes a year, which isn’t, frankly, out of realms of possibilities.
Our next point of assessment will be late December 2020.
Timeline and Updates
The timeline and the rest of the beta phases (5-10) will be rescheduled and adjusted accordingly.
We certainly are going to proceed with the development. However, I’m not sure if I’m going to share any updates on the project anymore until December 2020. Otherwise, they will sound the same: we achieved something, and we can’t show it or talk about it. F* Pandemic and blah blah.
It’s Okay To Judge Us/Me
Feel free to become as judgmental as you can. After all, this is a part of any reporting on any adventure. It’s okay. I can even hear some of you are rolling your eyes saying: real developers ship blah blah… 😀
I’m not just a developer, as the founder and CEO, I’m committed to being a business-oriented person. I don’t follow any bootstrapping models.
There isn’t any correct growth model for your company, but one you build out of your careful analysis of the situation and deciding how to proceed accordingly.
Till the next one, stay calm.
Cheers!
Credit: The title is composed based on a creative idea from one of my close friends, Dr. Arash Jalali.