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You don't run a $100M business like you run a $1M business. In the $100M range (and before), you start obsessing about gross margins, tax issues, renewal busin
by alain94040 18y ago
You don't run a $100M business like you run a $1M business.
In the $100M range (and before), you start obsessing about gross margins, tax issues, renewal business, reduce on-going discount practices, etc.
When you are in the $1M range, you are focusing on gaining your first customers and it doesn't really matter if the deal is profitable or not, each sale makes you grow by leaps and bounds.
If you are detail-oriented, you'll enjoy the $100M business. If you are a born-entrepreneur, you may prefer the 0-to-1 adventure. I know where I stand.
- run4yourlives 18y agoand it doesn't really matter if the deal is profitable or not, Um, it matters more, if anything. SV mentality is not the path to success. The faster you get profitable, the better your chances overall.
- staunch 18y agoFor a tiny business immediate profitably might be an absolute requirement for the survival of a company. For a company that's prepared to spend money to have significant long term success it's a different story. It may very well be wise to aim for $10 million in revenue with $500k losses rather than a more conservative $1 million revenue with $50k profit.
- alain94040 18y agoOk, I should have been more specific. When you close your first deals, you care about bookings. You cash the check. When you approach the $100M range, you care about revenue, with its complex rules about revenue recognition, whether the deal has to be recognized over multiple years, etc. You can end up in a situation where the CFO tells you that the check in your hand is not profitable... Weird.