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I find it amusing when a journalist writes an article about a prominent startup (either privately held or preparing for an IPO) and decries that, “They’re not even profitable!” Exec Summary: Most companies (98+%) in the world (even tech startups) should be very profit focused. One of them is profitability.
2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. You can be pissed off, but I don’t set prices. That’s stupid.
This is part of my ongoing series on Startup Advice. As startup entrepreneurs we all want to work with them because having their name as reference clients makes it so much easier for marketing, PR, selling to other customers, fund raising and even recruiting. Large companies can be strange sometimes. Sometimes it actually does.
It’s a conversation that creeps up from time-to-time. For a combination of reasons I didn’t end up talking with the CEO in time and the company quickly became over subscribed. They might want you to start lean. This post was prompted by an email exchange I had with a young entrepreneur. That’s OK, too.
Shallow and superficial and racing from segment to segment in search of some take up has never been a strong strategic plan for me. I have written this up before if you’re interested – I call it Deflationary Economics. LEAN STARTUP MOVEMENT. INNOVATOR’S DILEMMA. He’s awesome to learn from. Business Model.
Nearly every successful tech startup I’ve observed over the past 20 years has gone through a similar growth pattern: Innovate, systematize then scale operations. Innovate In the early years of a startup there is a lot of kinetic energy of enthusiastic innovators looking to launch a product that changes how an industry works.
As a tech startup grows it needs to develop more process & management if it is to scale. Some objections are real and they end up becoming changes to your product, your service plan or your pricing / bundling. More experienced sales leaders seldom compete on price. It is tacit knowledge.
I promised to do this post as a follow-up to the session to provide additional links and information. Once you build it, they will now ask you about the key metrics that they need proven in order to see if you really are a good investment. The real reason to build an MVP is to do early tests of key StartupMetrics for the business.
In addition to being a thought leader within the Lean Startup Movement , Steve is also a professor at Stanford and Berkley. And then they said one thing that most marketers go their whole career never hearing, 'Listen Steve, price is irrelevant, it is speed that matters.' The first thing I did was raise our prices.".
At our mid-year offsite our partnership at Upfront Ventures was discussing what the future of venture capital and the startup ecosystem looked like. This happens slowly because while public markets trade daily and prices then adjust instantly, private markets don’t get reset until follow-on financing rounds happen which can take 6–24 months.
I work with a lot of startups. I start to notice when bad behavior creeps into the system as a whole. The minute you try to monetize now they have metrics with which to beat you up and say you’re business has limitations.” They would prefer you always move up-and-to-the-right. Again, all true.
I realized a while back that creating a new company for the first time is a lot like whipping up a great dinner entrée for the first time – you need a recipe, even though it may look simple. Yet you may not be so sure where to start, and how to put it all together. Emeril Lagasse is always ready to “kick it up a notch!”
Yesterday, I was talking to a startup founder about their MVP and they said something that finally got me to write this post: "I have a few investors interested but they want to see a product." If you do build the MVP and show it to them, they will ask you about your metrics. They really want metrics, not a product.
My friend Ethan Anderson put it best to me after the panel, “You probably shouldn’t have been up there. I wrote about it here (mostly starting at point 7) and Chris Dixon wrote a great post about it here. So in the past we needed VC to really get a startup going. I said almost nothing in the 30 minutes.
As a mentor to entrepreneurs, I tend to see many of the same obstacles appearing in every new startup, and since I don’t want to appear to be a downer , I’m not sure how to properly warn people ahead of time to be on the alert for these challenges. Even the strongest relationships are often tested and broken by the stresses of a new startup.
Its interesting to think about how universities might want to have their staff better aligned with moving ideas from the lab to start-ups. He has been the CTO for several start-ups, most notably eHarmony. Technology Advisor Technology Roles in StartupsPricing Customer Acquisition Sunk Costs and More -.
As a startup, you need to use your limited resources to excel at a few core things for your best customers, in order to stand out and get the momentum going. Pick a single metric that is the focus for all growth. Customers today have adapted to a fast-moving world, and they expect every business to keep up. Less is more.
They decide to wake up early to read the materials. In town board members also only scan it because they, too, have morning meetings before the board meeting starts. The meeting starts. It probably starts late. If you put up 5 slides on “what should we order for lunch today” the board will spend 30 minutes debating that.
When you see startups like SpaceX and Pinterest grow from a low valuation to a billion dollars in just a few years, it’s easy to assume that if you just keep doing what you are doing, you can get there as well. Of course, that means a mindset willing to give up much more equity, and taking on a whole new level of risk.
For this morning's interview, we spoke with Los Angeles-based Halla , a venture backed startup, focused on personalized recommendations for the food ordering industry. We spoke with CEO and co-founder Spencer Price to learn more about the company. Spencer Price: That's a fair question. The company has raised $1.9M What is Halla?
skip to main | skip to sidebar SoCal CTO Monday, March 12, 2007 MyShape Article - Analyst Misses the Point The NY Times did a piece today on MyShape, a start-up in Pasadena - Log in Your Measurements, and the Clothes May Fit. He has been the CTO for several start-ups, most notably eHarmony.
Our marketplace is organized like a used item marketplace, like Amazon or eBay, or Craiglist, in that a seller lists an item, picks a cause, and sets a price. Exatly a year ago was the very beginning of KarmaGoat, where I was trying to come up with something that would work as a marketplace donating items. Where did the idea come from?
I have been close to the tech & startup sectors for more than 20 years and I can’t think of a period in which I felt more optimistic about the innovation and value creation I see in front of us. The number of startups being created has increased by an order of magnitude. Thank you, Aaron Sorkin! Some will pay off, others will not.
Many startups fail before reaching that magic “cash-flow positive” position they have been striving for, despite seemingly reasonable financial projections. Always use a break-even analysis to measure what volume and price are required to offset total costs. A startup must ensure that the payments are collected per agreed terms.
skip to main | skip to sidebar SoCal CTO Saturday, February 17, 2007 About this Blog Ive been thinking about doing a blog with my thoughts on technology and whats happening in the Los Angeles area technology scene for a while, but it was Ben Kuos recent start of a blog that inspired me to actually go ahead and do it. Thanks Ben.
This company was started by Victoria Duff (who many of us know from back in the late 90s), Phillis Lane (who I have known for quite a few years) and Jon Bukosky. Hopefully this is a sign of a new kind of ecosystem where there will be the possiblity of creating good start-ups that are not a classic VC kind of play.
skip to main | skip to sidebar SoCal CTO Saturday, February 17, 2007 Where LinkedIn Works for Me Ive been a long time user of LinkedIn , but only recently have started getting the benefits I always expected. He has been the CTO for several start-ups, most notably eHarmony. He has twenty years’ experience as a CTO.
Young entrepreneurs and startups, in particular, often remain naively unfocused, despite their passion, of what it takes to provide the high-quality service expected. It’s a tough job, and inexperienced entrepreneurs just don’t know where to start, and how to do it. Yet the average perception of customer experience has not improved.
He has been the CTO for several start-ups, most notably eHarmony. Technology Advisor Technology Roles in StartupsPricing Customer Acquisition Sunk Costs and More -. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO? . ► February (2) CTO Founders / Cofounders Part-Time Startup CTO?
He has been the CTO for several start-ups, most notably eHarmony. Technology Advisor Technology Roles in StartupsPricing Customer Acquisition Sunk Costs and More -. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO? . ► February (2) CTO Founders / Cofounders Part-Time Startup CTO?
As a bonus, the “quick read&# eBook and Kindle editions are priced as “singles&# at only $2.99 Each book is dedicated to one subject: Startingup, raising money, positioning for success, growing your business, building great boards, protecting your business, managing your workforce, and finally – cashing out.
As I look at more and more start-ups predicated on viral growth, and at the use of social marketing, its becoming simultaneously easier to understand some aspects of viral growth and still a gap in understanding whats going to be that "hook" that will grab people at the end of the day. Why did MySpace win?
Almost every early-stage startup who has approached investors for funding has heard the innocuous sounding rejection “I love your idea, but come back when you have more traction.” A graph that shows a hockey-stick “up and to the right” curve with at least three data points per key indicator is a great visual assist.
He has been the CTO for several start-ups, most notably eHarmony. Technology Advisor Technology Roles in StartupsPricing Customer Acquisition Sunk Costs and More -. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO? . ► February (2) CTO Founders / Cofounders Part-Time Startup CTO?
He has been the CTO for several start-ups, most notably eHarmony. Technology Advisor Technology Roles in StartupsPricing Customer Acquisition Sunk Costs and More -. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO? . ► February (2) CTO Founders / Cofounders Part-Time Startup CTO?
He has been the CTO for several start-ups, most notably eHarmony. Technology Advisor Technology Roles in StartupsPricing Customer Acquisition Sunk Costs and More -. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO? . ► February (2) CTO Founders / Cofounders Part-Time Startup CTO?
It''s a line from an old movie "Field of Dreams" which is still leading to the demise of too many startups, led by entrepreneurs who really started their business to build an exciting new product or service. Of course, for a price, there are many marketing organizations and gurus willing to come to your aid.
Ive personally been involved in the start-up world in Los Angeles for about 15 years, and have had the opportunity to work on many early-stage companies (e.g., He has been the CTO for several start-ups, most notably eHarmony. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO? .
Some items from the pod cast: 100,000 - babies born as a result of relationships started on eHarmony 15M registered 1% of marriages in US this year resulting from eHarmony I dont know if these are true, but still, the impact of the vision of the original founders Neil Clark Warren and Greg Forgatch is amazing.
One of his companies - Gluecode - was sold to IBM for a pretty good price. He has been the CTO for several start-ups, most notably eHarmony. Technology Advisor Technology Roles in StartupsPricing Customer Acquisition Sunk Costs and More -. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO? .
In fact, he’s personally started 34 businesses and run 17 of them. He started a car washing business as a way to be able to drive other people’s fancy cars. So while it started more about finding solutions to get him driving cars more or logging airline miles he also focuses on big, industry-changing ideas.
He has been the CTO for several start-ups, most notably eHarmony. Technology Advisor Technology Roles in StartupsPricing Customer Acquisition Sunk Costs and More -. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO? . ► February (2) CTO Founders / Cofounders Part-Time Startup CTO?
He has been the CTO for several start-ups, most notably eHarmony. Technology Advisor Technology Roles in StartupsPricing Customer Acquisition Sunk Costs and More -. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO? . ► February (2) CTO Founders / Cofounders Part-Time Startup CTO?
By definition, every startup is predictably unpredictable, since new solutions have no proven track record, startups are usually building a new market, and the world around them is changing faster than ever. The market changes faster than your startup. The money runs out before revenues start.
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