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Monday, June 3, 2013

Downscaling

Startups often spend scarce time and resources trying to attract funding to upscale operations.

Recently, a veteran business builder pointed out that organizations that take money for operations usually end up losing the companies to their funders within three years. The funders have no clue how to operate their new company.

Rationalizing income to expense can go the other way. What if you planned your projects to match resources?

Perhaps prototypes with fewer features, or development delivered in fewer weeks?

Innovation is a sprint and even I get seriously winded in the second hundred yards. (sarcasm font)
Sroc famously said, “I’m as fast as I ever was...between two telephone poles.”

There are incredible bargains in newer technology resources. Just because you haven’t used them doesn’t justify wasting money.

Open source leadership greases a whole new speed of play.

If you haven’t got something customers want, how do you justify your salary?

It’s a different economy. Figuring out how to succeed requires hard study.

What can you deliver by Wednesday?

The Sales Model – Where To Focus

1 comment:

Jack Gates said...

When you come up with a new idea or product, during the concept stage, sky's the limit.

Rationality sets in during the design stage - lofty goals but not sky-high.

Reality sets in when prototyping - time and resources are required for each feature and function.

The cash folks - start-up, angel, venture, and speed-up capital - show up offering funds, tempting a reset to sky's the limit for features, etc.

Experienced, successful entrepreneurs will tell you that an early infusion of funds for expansion before launch is often detrimental. They find that bootstrapping is a better course, with funding and expansion after solidly established.

Good approach is to set the scope of new development to what you can do now and what you can afford now - features and enhancements can be added after you have customers and cash flow.