Thread by @KarthikS2206

In my startup’s journey to a million dollars, I've made a million mistakes.

These are mistakes I wish someone had warned me about when I was starting as an entrepreneur.

So to all aspiring entrepreneurs & startup enthusiasts, here are my top 7 mistakes, so you can avoid them👇

1/ Business before tech

Everyone wants to make a million dollars before making 1 dollar. So, we start by building complex tech.

BIG mistake!

You started a company to make money. Tech is meant to help you with that - not the other way round.

So, business-first. Tech-later.

1/ (contd.)

Here’s how we screwed up:

https://twitter.com/KarthikS2206/status/1363753880849317888

2/ “Scale” is not absolute

Most of us think scale is a MILLION users. Nope. Scale is the **next phase of growth** of your startup.

For e.g.
- At idea stage, scale is getting 10 users.
- Have 10 users? Scale is 100.
- 100? Scale is 1000.

You get the point.

2/ (contd.)

The reason I define "scale" this way is that anything you can't realistically prepare for is meaningless for your startup.

Preparing for million users when you have 5 friends using your product is a brilliant way to waste your time.

3/ Don’t fall in love with your MVP

An MVP is possibly the most mysterious term in the startup world. Everyone seems to have their own definition for it.

My definition: "*Something* that enables you to interact with your potential users".

3/ (contd.)

So, what this means is that it can be a:
1. Newsletter
2. Landing page
3. Your social account(s)
OR
4. An actual product

Most of us consider only No. 4 - which is fine as long as we don't fall in love with it and build it in isolation for the next 20 years.

4/ Customer-funded >> VC-funded

Everyone is ready to give an arm & a leg for VC investment. Much of this hype is just media generated.

VC funding is a means to an end, not the end itself.

Use it is as one of the tools you have to grow. Don't live & die by it.

4/ (contd.)

Ultimately, all startups NEED customers - same can't be said about VCs.

In fact, even avoid VCs in the early days.

Growing in constraints is good - it forces you to focus on making money.

Also, let me promise you - throwing money at problems rarely solves them.

5/ When in doubt, charge money

All first-time entrepreneurs are afraid to charge money for their products.

Firstly, recognize that you are NOT a charity. You're here to make money - no shame in that.

5/ (contd.)

Further, you get a 100% honest feedback from your customers only when they pay for your product. Everything before is diluted or inconsequential.

Lastly, not charging money makes you do stupid things, for e.g. building features no one wants. DON'T be stupid.

6/ Don't outsource learning

You can't hire your way out of expertise you don't have.

For e.g. Don't know tech - hire a CTO. Don't know marketing - hire a CMO.

Delegation is NOT the same as "I depend on my CMO to make the right marketing decisions."

(contd.)

6/ (contd.)

Early on, one of the founders should always pick up the core areas of a startup. Even if it means you are starting from the basics.

Don't be afraid or consider anything "beneath you" to learn. Your expertise has compounding returns.

7/ Trinity: Reality, Patience, Ambition

You invest so much of your time & energy into your startup. Soon, it is easy to fool yourself into believing...well, anything.

So, regularly review your progress & separate fiction from reality.

7/ (contd.)

At the same time, outcomes can't be forced - they will take the time needed. So, patience is essential.

This doesn't mean you need to lack ambition. Be ambitious. DREAM.

But don't be blinded by it.

You need to live in a "patient reality".

That's it for this thread!

I regularly write on startups & marketing, so, if you would like more such threads, do consider retweeting the first tweet & following me :)

https://twitter.com/KarthikS2206/status/1423501625562259456