Ask YC: Advice on shutting down startup

#1

Post by prashantdesale » Fri, Dec 25, 2009, 4:24 AM UTC

I and 2 of my friends developed Onista (http://www.onista.com) a while back and we also invested some money (not a whole lot) for hosting and legal bills (like forming corp, patent investigations and all) We launched it, and somehow we never got to do much on marketing the app so it never picked up (or may be it was a wrong idea to begin with) At this moment all 3 of us lost the interest and want to shut down Onista to pursue other ideas independently because our time commitments are not same anymore.

What are our options? - Try to sell Onista? Not sure if we can even do that since there is not much traffic. Don;t even know if we can do this. - Just shutdown servers, dissolve corp and move on?

Any advice on what is the best way to move on?

Thanks in advance

Re: Ask YC: Advice on shutting down startup

#2

Post by robotrout » Fri, Dec 25, 2009, 4:56 AM UTC

http://www.onista.com/

Re: Ask YC: Advice on shutting down startup

#3

Post by snitko » Fri, Dec 25, 2009, 5:03 AM UTC

I think you probably should put a huge message on the site, saying you're shutting down, so that those who still go there occasionally, wouldn't be surprised too much. After all, they are your users, so you've got to respect them till the end. Also make sure you prevent new users from signing up.

Re: Ask YC: Advice on shutting down startup

#4

Post by robotrout » Fri, Dec 25, 2009, 5:08 AM UTC

First, you need to write up a post for HN, detailing what niche it was that you were trying to fill, some of the obstacles you overcame, and why you think you failed. It will be educational for you to do it, and for us to read it.

Second, I think you just pull the plug. You can put an announcement on your homepage, giving your users notice, and email them, as well, if you have their emails. You could even send them the post detailing your journey and why it is ending, to give them a bit of a feeling of closure, and not feeling just left out in the cold.

Take the code. A lot of that back end stuff that you've written, you'll build off of for your next site.

Good luck in your next venture. 2010 could be your year.

Re: Ask YC: Advice on shutting down startup

#5

Post by wensing » Fri, Dec 25, 2009, 5:18 AM UTC

I remember you telling me about Onista at the YC offices back at Startup School '07.

Re: Ask YC: Advice on shutting down startup

#6

Post by rms » Fri, Dec 25, 2009, 5:29 AM UTC

I think your site has to be worth something on Sitepoint.

Re: Ask YC: Advice on shutting down startup

#7

Post by jmathai » Fri, Dec 25, 2009, 6:09 AM UTC

robotrout wrote: post #4

First, you need to write up a post for HN, detailing what niche it was that you were trying to fill, some of the obstacles you overcame, and why you think you failed. It will be educational for you to do it, and for us to read it. Second, I think you just pull the plug. You can put an announcement on your homepage, giving your users notice, and email them, as well, if you have their emails. You could even send them t…

Couldn't agree more. It is a fine line but start ups both require you to stick out the tough times but also know when to walk away. Definitely communicate with your users and don't drag it out. Reflect on what went right and wrong and use that at your next start up.

We wasted a lot of time because we knew our technology was worth something. In hindsight I wish we didn't drag it out. Weigh you options and make the best decision you can and don't look back.

Re: Ask YC: Advice on shutting down startup

#8

Post by prashantdesale » Fri, Dec 25, 2009, 6:34 AM UTC

robotrout wrote: post #4

First, you need to write up a post for HN, detailing what niche it was that you were trying to fill, some of the obstacles you overcame, and why you think you failed. It will be educational for you to do it, and for us to read it. Second, I think you just pull the plug. You can put an announcement on your homepage, giving your users notice, and email them, as well, if you have their emails. You could even send them t…

Certainly.. I do plan to write all my experience on what we were trying to do, what went wrong and what I myself will correct when I build next startup.

About pulling the plug, We are thinking around couple of months process. Like putting announcement as you suggested, and informing users and then pulling the plug.

Thanks

Re: Ask YC: Advice on shutting down startup

#9

Post by prashantdesale » Fri, Dec 25, 2009, 6:35 AM UTC

wensing wrote: post #5

I remember you telling me about Onista at the YC offices back at Startup School '07.

Yep, I remember we discussed Onista and Sormpulse. Hope all is going well at your end.

Re: Ask YC: Advice on shutting down startup

#10

Post by tibbon » Fri, Dec 25, 2009, 6:49 AM UTC

snitko wrote: post #3

I think you probably should put a huge message on the site, saying you're shutting down, so that those who still go there occasionally, wouldn't be surprised too much. After all, they are your users, so you've got to respect them till the end. Also make sure you prevent new users from signing up.

Very true. I've seen too many startups recently do a 'silent' laying off of everyone, closing doors, but leaving the servers up and the community to rot. The users don't even know that no one's driving the boat- but that servers are just still running because the prepaid their bills for the year. Unfortunate really.