This document discusses the importance of revenue for startups. It contains advice from multiple sources emphasizing that startups should focus on creating value for customers and capturing revenue from the beginning. It warns that overly focusing on growth and scaling prematurely is a common reason why many startups fail. The document stresses that revenue projections should be based on real market research rather than just pulling numbers out of thin air. Overall, it emphasizes that startups need a strategic focus on revenue in addition to growth in order to be successful.
37. What the entrepreneur says: "Our revenue is projected at $25M for next year, because we think this is going to take off in a big way." Source
38. What the VC is thinking: "Looks like that number was just pulled out of thin air. This person didn't do their homework. I'm going to tune you out and get back to answering emails on my BlackBerry.” Source
50. When you get to my age, you'll measure your success in life by how many of the people you want to have love you actually do love you. That's the ultimate test of how you've lived your life. Warren Buffett
51. Hat tip to http://andrewchenblog.com/Getting Real essays
Avoid the consulting trapdistractionscustom dev work for a deal
1. Custom shop
2. Taking on a consulting project to make payroll…it’s a huge distraction from finding your customer…don’t assume you know who it is from the beginning
Consultants invoices get aged, often just never get paid…
3. Entering into super complex relationships
4. Trying to deliver what others are doing with teams 1000 times larger than yours.
Every startup is searching for model that has scalability and repeatability. You’ve got to nail the product market fit. You need to find a cultural fit with your team
Good god, don’t break even now
Andrew chen
Creating massive value is not about chasing a technology or tech breakthrough. irrelevance
It's widely believed amongst startup thought leaders, that successful startupssucceed because they are good searchers and failed startups achieve failure byefficiently executing the irrelevant.
95 percent of people buy on emotion and justify their purchase logically. You really need to wow someone to get their attention and spend
IM NOT SAYING THAT REVENUE ISN’T IMPORTANT
Sometimes capturing it is harder than you ever imagined. Entrepreneurs tend to overly enthusiastic about the time to sales. Most of us have never been responsible for a pipeline. Our sales can take 6 months to close. My original model didn’t even factor this in, or the COGS associated with this…
he says. “I encourage every startup I advise and invest in to start experimenting with revenue on day one
YOUR ASSUMPTIONS REALLY MATTER. What will you look like when you’re no longer a startup and a profitable entity
Don’t I need to show a hockeystick
It offends your sensibilities. Intellectually dishonest
Speaks to you as an entrepreneur. Are you a risk taker. Are you thinking big. “your extremely likely to be wrong”
It’s a reflection of the entrepreneurSource:
Gets you on the same page with your team
I believe the expenses side of your P&L projection will develop
Numbersforstartups.com
What motivates you?
Most successful founders are driven by impact rather than experience or money.