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Should Startups Focus on Profitability or Not?

Both Sides of the Table

The most obvious way to explain this is with sales people. If you hire 6 sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business for 4-6 months. “COGS” represents the amount that each sale costs you. .

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How TVC Aims At Acquisitions, Not IPOs, with Jeb Spencer

socalTECH

We are focused on the investment in and acquisition of software firms that are generating $2.5M They've grown their businesses through word of mouth more than through a large, established sales organization and they have done that by building a software product that is very well received, and unique in their particular niche market.

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9 Women Can’t Make a Baby in a Month

Both Sides of the Table

Those of us that are willing to admit that we fawked things up in the first dot-com explosion and learned from our mistakes have the battle wounds to make more pragmatic decisions in 2011. I had my sales teams telling me we needed certain features to be competitive. He didn’t feel my pressures on sales, marketing and ops.

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Startup Location Is Still A Critical Success Factor

Startup Professionals Musings

Of course, there are always exceptions, but how much added risk do you need for your startup? Maxwell Wessel, in a recent article in the Harvard Business Review on this subject, points out the exception successes of Zappos in Las Vegas, Sendgrid’s massive growth in Colorado, and RightNow’s $1.5 The list goes on and on.

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The Most Obvious Mobile Ad Unit and What the New York Times Got Wrong

Both Sides of the Table

Of course tech companies with free products don’t want to take a phone call from end users. You’ll note, of course, that Apple will happily take calls from you. According to Forrester Research (2011 report) 77% users who abandoned an online purchase cite the inability to speak to some as their primary reason for leaving.

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It’s Morning in Venture Capital

Both Sides of the Table

Looking ahead at the next decade I am excited by what I believe will be viewed as one of the best and most rational investment periods for venture capital due to seven discrete factors: 1. If you want to understand the details of why this is, I covered it in detail in this post, Understanding Changes in the Software Industry.