Looking for a way to kick your startup into gear but mindful of budget? The xMINIMUS Shared Risk/Shared Reward program lets you work with a motivated and invested business partner while minimizing your upfront costs.
What is Shared Risk/Shared Reward?
The best outcomes occur when all parties have skin in the game, each invested in a successful outcome.
That’s why xMINIMUS offers Shared Risk/Shared Reward pricing for startups. We recognize that many startups operate on tight budgets while building early versions of the product that will generate future revenue.
Typically, service providers expect full payment up front or upon project completion. In contrast, xMINIMUS supports your venture with lower initial costs and flexible installment payments that don’t begin until your product generates revenue.
Shared Risk/Shared Reward distributes project risk by reducing risk for startups and allocating some of it to xMINIMUS.
How does Shared Risk/Shared Reward work?
When you’re bootstrapping your business, every penny counts. With Shared Risk/Shared Reward, xMINIMUS gives customers the option to pay a portion of the service cost upfront with the balance payable as the project generates income.
With this method, xMINIMUS becomes invested in the success of your startup and has added motivation to deliver a quality product on time. You get immediate access to more billable hours, and we work harder than ever to ensure an exceptional outcome.
Once the project produces income, an agreed upon percentage of revenue is allocated to xMINIMUS until the balance is paid. If the project never makes money, then the founders owe nothing; it’s truly a shared risk program.
How are the hourly rates determined?
To determine our hourly rate, xMINIMUS evaluates your startup’s offerings, consumer pricing, and market size. We then provide you with a table that details your options. You’ll see the rate that’s invoiced, the rate that’s added to your balance and the total price once the account is paid in full.
Opt for a lower hourly rate to be invoiced immediately and pay more once your startup is profitable. Opt to pay more now, and you’ll owe less in the future. Depending on your situation, you can keep more risk for yourself or allow xMINIMUS to lighten your burden.
What’s it look like in real life?
Here’s an example that illustrates how Shared Risk/Shared Reward can help:
- A startup wants to build business intelligence software for hospitals, and they’re interested in the possibility of a Shared Risk/Shared Reward arrangement.
- The xMINIMUS team evaluates the market for that product and estimates risk and project costs.
- xMINIMUS provides the company with an estimate that includes the number of expected billable hours between now and project completion (or for project phases) with options for hourly or project rates.
- xMINIMUS and the company agree on an hourly rate, expected timeline, and residual payments upon project completion.
You are equipped to evaluate project scope, and in control of rates that make the most sense for your needs.
Does Shared Risk/Shared Reward apply only to software development?
The Shared Risk/Shared Reward program applies to our entire suite of services. In addition to creating software and managing its development, xMINIMUS also offers comprehensive product management, customer research, market testing, and digital marketing solutions.
At the start of each new project, we compile a roadmap that details the methods we’ll use to bring a product to market, and the Shared Risk/Shared Reward program applies to the entire process.
Partner with xMINIMUS and see how your business can reap the rewards by sharing the risks. By aligning our goals and priorities to yours, the xMINIMUS Shared Risk/Shared Reward program delivers the product you need, at a price you can afford, at a time when it is most important to your success.
Contact us at email@example.com or by phone at (888) 965-8898 to set up your personalized consultation!