Startup Secret 52: Be pound wise and penny foolish
You can play the lottery and hope your cool tech company gets acquired, or you can dig in and actually devise a plan for making money.
So much of a startup CEO's job is raising money, that it stands to reason that the CEO will also spend a lot of time worrying about spending it. Or not spending it.
It can tie you in knots, according the Chance Barnett, the CEO of a crowdfunding portal, Crowdfunder (see). But in the early days of a company's existence, what you spend money on, or what deals you make to save it, do not tell the tale. Yes, running out of money is a real danger for startups, but if you focus on that, you end up thinking small thoughts making small plans. You need a different focus.
Chance says, "Just focus on acquiring a customer. And focus on making money from them at 30 days, at 60 days, and at 90 days. If you can do that, you have a business."
Try this: Look at your favorite new tech companies and try to figure out where their revenues are, and if they are repeatable. I did a little hot-or-not off the top of my head withvs. , vs. , and vs. . Just thinking about the obvious revenue flows of these (or any) companies is a good set of mental push-ups for getting the day going if your job is thinking about startups -- your own or others.
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