Ask HN: Funding my app myself
I'm with a small team of people and have enough funds to fund about 1,000 hours of work to get the application built. That's nearly double the number of hours I believe we need.
The product we will be building is a web app for businesses and I think will be popular (based on design feedback I've received from target market). We have free and paid plans. I'm predicting about $500,000 in revenue over 2 years after launching.
My question is this: I'm going to self-fund this but am writing a "term sheet" and wondered what I should put on it?
I also wondered what percentage of profits should I be paid back in?
Also, I was wishing to make a profit from the risk I'm taking on, so any thoughts on a percentage I should be paid "over" what I invest?
I'm going to talk to my accountant about my tax implications. I'm including a clause that says I get repaid from profits from the company. Thanks.