Forget number of customers, forget app downloads, forget reviews on Techcrunch, Yourstory or any other review site - the only metric that will matter to your start-up from now to the rest of it's existence is
profit=revenue-expenses (over simplified).
So many start-ups keep tweaking business plans, spending marketing dollars, and hire the best talent with this weird notion that 'Initially start ups don't make money'. That is 100% pure bullshit.
If you have not figured out a way to monetize on Day 1, you'll probably find it difficult to find a way to monetize later. The problem is that because of the lack of quality incubators in India, the few that exist are just rich businessmen who have absolutely no idea about how and where to invest. The eagerness to get a higher than stock market return makes them invest in the crappiest of business ideas. They go by 'gut-intuition' and business plan projections without seeing how much money has been made by the company till date.
Face the facts
Fact 1: Money is the only tangible measurement tool. If you're hiring someone, ensure that someone gives you more revenue than what he/she costs
Fact 2: You may work really hard, but if you're not able to sell, maybe you're better enough not working at all
Fact 3: Make losses, but ensure Profits are as positive as possible. If you're already making losses, you might want to curtail that indirect marketing spend, and go talk to loyal customers to figure out how can you do more for them and thereby make more money.
profit=revenue-expenses (over simplified).
So many start-ups keep tweaking business plans, spending marketing dollars, and hire the best talent with this weird notion that 'Initially start ups don't make money'. That is 100% pure bullshit.
If you have not figured out a way to monetize on Day 1, you'll probably find it difficult to find a way to monetize later. The problem is that because of the lack of quality incubators in India, the few that exist are just rich businessmen who have absolutely no idea about how and where to invest. The eagerness to get a higher than stock market return makes them invest in the crappiest of business ideas. They go by 'gut-intuition' and business plan projections without seeing how much money has been made by the company till date.
Face the facts
Fact 1: Money is the only tangible measurement tool. If you're hiring someone, ensure that someone gives you more revenue than what he/she costs
Fact 2: You may work really hard, but if you're not able to sell, maybe you're better enough not working at all
Fact 3: Make losses, but ensure Profits are as positive as possible. If you're already making losses, you might want to curtail that indirect marketing spend, and go talk to loyal customers to figure out how can you do more for them and thereby make more money.
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