Early-stage companies are in a constant battle between growth and staying alive.
I’ve made (and make) several mistakes, here are 6 to avoid:
I’ve made (and make) several mistakes, here are 6 to avoid:
1. Wasting time on raising capital too early.
Win customers, prove your business model, print profit and maybe you’ll be lucky enough to never need outside capital. Many early-stage hours wasted here.
Investors do not want to invest in pre-revenue startups.
Win customers, prove your business model, print profit and maybe you’ll be lucky enough to never need outside capital. Many early-stage hours wasted here.
Investors do not want to invest in pre-revenue startups.
2. Credit cards
Financing marketing campaigns rarely works out well – they need time to optimize. Also, the SaaS recurring fees add up (and most products aren't as good as advertised).
Bankruptcy starts with "we'll pay it later".
Financing marketing campaigns rarely works out well – they need time to optimize. Also, the SaaS recurring fees add up (and most products aren't as good as advertised).
Bankruptcy starts with "we'll pay it later".
3. Paying others first
Building a great SMB takes time. In order for it to work you’ll need to get paid. Start paying the owners from the very first dollar collected.
Businesses are only worth it if the owner makes 3X the market rate.
Building a great SMB takes time. In order for it to work you’ll need to get paid. Start paying the owners from the very first dollar collected.
Businesses are only worth it if the owner makes 3X the market rate.
4. Over insuring
There is insurance for EVERYTHING, and if you buy it all you’ll run out of money. Get an agent who is business-focused and get what you NEED. Backfill as you grow.
I am NOT saying to not get insurance.
There is insurance for EVERYTHING, and if you buy it all you’ll run out of money. Get an agent who is business-focused and get what you NEED. Backfill as you grow.
I am NOT saying to not get insurance.
5. Unorganized Bookkeeping
Invest in a bookkeeper who is great at QuickBooks. Organized line items give quick insights into what’s getting ROI and shines a light on holes. Do not do this yourself.
Do not penny pinch when it comes to financial data accuracy.
Invest in a bookkeeper who is great at QuickBooks. Organized line items give quick insights into what’s getting ROI and shines a light on holes. Do not do this yourself.
Do not penny pinch when it comes to financial data accuracy.
6. Operations Before Sales
Early on, sales are the only thing that matter. If you can consistently drive revenue you can pay experienced people to help you figure out any business process.
Nobody is going to sell your product for you in the early days.
Sales > Everything
Early on, sales are the only thing that matter. If you can consistently drive revenue you can pay experienced people to help you figure out any business process.
Nobody is going to sell your product for you in the early days.
Sales > Everything
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