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Just my two cents, I don't know if I agree with the concept that there is a bubble that is just waiting to burst, but I think focusing on the core of how you w
by jhartmann 14y ago
Just my two cents,
I don't know if I agree with the concept that there is a bubble that is just waiting to burst, but I think focusing on the core of how you will make money is totally key to any startup's success.
In my mind, you need to figure out first how your startup will not die (revenues), and once you have established this runway for yourself figure out how to go up and to the right. I know that is a horrible oversimplification and like any recipe needs to be adjusted for 'altitude'. I do think to not tackle these issues early on is just a prescription to give away more of your company then you probably needed too, and set a dangerous precedent for how your company views money.
All that being said I don't think that all companies fit into this mold, and some really need the time to figure things out instead of rushing into a market and trying to figure out the money side of the equation.
I guess the point of my rambling is that you should sweat about where your money is coming from as early as possible. To not do so is risky, and your chance of failure will be high. If you choose to focus on traction first, you really should have lots of experiments in the pike to figure out how to make money from those users. Startup's are all about discovery and growth, but in my opinion revenue and costs should always be near the top of the focuses of any search for that sustainable business model.