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Ask HN: Important nonobvious startup/business lessons you've learned?

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171–180 of 256 posts

Re: Ask HN: Important nonobvious startup/business lessons you've learned?

#171
My 2 cents.

Research before you build anything. If there’s no need for it, don’t build it.

Choose your business partners wisely. Don’t fall into the trap of working with smart assholes, if someone is an asshole - no matter how smart. The asshole-ness will take over no matter what. (That’s just one side of it, many other things to watch for).

Build trust, it takes time and effort to get this one right.

Put your name on your work. One of pg’s essays also mentions how putting your name on your work let’s society reward you. I’ve seen it happen in front of my eyes. The product with a UI that looks bootstrapped together is like magic for your customers. No matter how basic or “ugly” your think your product might be, stand beside it like it’s your first born.

Re: Ask HN: Important nonobvious startup/business lessons you've learned?

#172
post #154
post #102

These are more enterprisy: If you sell through a channel, that channel is your customer, not the end user. They have needs and actually those needs (not desires, needs) are more important than the end users' -- if your channel doesn't sell the product it doesn't matter how much you've worked to add that end-user feature. Have the entire exec team go on a sales call once a quarter (not all together on the same call!).…

> That mild-mannered A/R clerk is the real difference between paycheck and no paycheck. What's A/R?

[deleted]

Re: Ask HN: Important nonobvious startup/business lessons you've learned?

#173
Customer acquisition funnels are multiplicative (E.g. Ad -> Landing page -> Signup -> Trial -> Actual product usage -> Purchase). Double any factor along the way, and the final output doubles. But it also means that if any factor along the way is 0, you get nothing out in the end. That can be incredibly demotivating when you're first starting out, because you don't get any payoff (or money to pay yourself or employees with) until you've made every factor non-zero. It also means that as long as any factor is zero, attempting to optimize any factors downstream from that is basically done in the blind (i.e. improving the product when you still don't have anyone even getting to your landing page).

Re: Ask HN: Important nonobvious startup/business lessons you've learned?

#175
post #116

Earlier quoted context omitted.

I meant “sales” as transactions, not “sales” as in the department or role.

The commenter with the advice clearly mean "sales" as the department or role. To a founder or CEO the word "revenue" is used where you're using "sales", it isn't wrong except in context but the intention was unambiguous to me.

It's ambiguous, and not that clear-cut.

Expressions like "A 20% increase in sales" are almost never used to describe an 20% increase in the sales department's headcount or budget. Most people would interpret that as a 20% increase in revenue from sales.

"Cost of Sales (COS)" in finance refers to the cost of making a sale, including all the costs required to produce the good or service sold, not just the compensation and other expenses associated with a sales department.

"Sales" as a noun does often refer to teh sales department, but there are times when it absolutely unambiguously means that, times when it almost never is interpreted as that, and times when it could go either way and a word like "revenue" would be clearer, but that doesn't make using the word" sales" to refer to revenue wrong.

Re: Ask HN: Important nonobvious startup/business lessons you've learned?

#176
post #118

Earlier quoted context omitted.

This is encapsulated by that simple statement. Do whatever you need to get sales.

I disagree, and that's why I responded. I've seen too many "we'll do whatever we need to do to get sales" turn into salespeople making unrealistic promises on impossibly tight deadlines. So then the sale is made, but in a way that ends up destroying the long (and even medium) term health of the business. Product/engineering goes on a death march to get things done, by the end of it many of those folks are burnt out,…

So I think both of you are 'right', but you're choosing to interpret, and argue, the statement from different perspectives.

Sales are important. However, as you note, sales now should not come at the expense of sales later (or lead to returns later, or etc). And debugging low sales is non-trivial.

Re: Ask HN: Important nonobvious startup/business lessons you've learned?

#177
post #46

Earlier quoted context omitted.

Sales fixes everything. Very hard to learn for engineers and designers often.

Yes, but I feel this is somewhat of a tautology: of course lots of revenue makes things easier. But the important part is to diagnose why you have low or declining sales. Sometimes it's because you don't have good sales people. But other times it's because the product you have isn't a good market fit, or it's really buggy, or your salespeople oversold and now your customers are unhappy with the actual functionality o…

Nailed it.

Focusing on sales to solve internal problems is like focusing on work to solve internal problems.

It can work to an extent, but sometimes you need to solve the internal problem before you can get the results you need.

So it's a feedback loop that leads to circular thinking. The problem is when we try to blame the external side of the feedback loop, to avoid seeing that our internal side is the problem.

Re: Ask HN: Important nonobvious startup/business lessons you've learned?

#178

Apply your technical skills to a non-technical business. Dont start a tech startup in a tech hub. Run a business completely unrelated to tech and use your skills to improve that business, theres SO much low hanging fruit out there. The venn diagram of tech skills and a non-tech business is where the opportunities are. This applies to many other unrelated skills.

I keep peddling this idea, but if tech wages came back to reality it would be affordable for small to mid sized companies to hire software developers to truly empower their specific businesses with software.

The reason for that is the same reason your idea works, most businesses outside the tech bubble stand to gain a lot form software. Currently they have no way to act on it except to hobble together a ruby goldberg of SaaS services or try and cram their businesses into a monolithic piece of software that expects your business to run a certain way.

Re: Ask HN: Important nonobvious startup/business lessons you've learned?

#179
post #116

Earlier quoted context omitted.

I meant “sales” as transactions, not “sales” as in the department or role.

The commenter with the advice clearly mean "sales" as the department or role. To a founder or CEO the word "revenue" is used where you're using "sales", it isn't wrong except in context but the intention was unambiguous to me.

So in the comment chain we have -

The original comment which said "more sales"; I've never heard someone in business refer to salespersons with the cutesy "sales" so I don't think it's reasonable to think "more sales" refers to people, and if they meant a larger department they would have said "larger department", not "more (department)".

The comment below that also says "sales fixes everything", which, again, same logic as the original (and has the same author as two below where they clearly say "we're talking sales of things").

The comment below that is the only one clearly confusing sales people/department, with sales of things, "I don't think you can solve it with more sales people".

The comment you're directly responding to said "We're not talking about sales people or the department, we're talking about actual sales of things".

And you're saying someone, other than the person being corrected, 'clearly' meant the department or role? Nah.

Re: Ask HN: Important nonobvious startup/business lessons you've learned?

#180
Be honest and humble. The business won't work as you expect. Keep an open mind and adapt. Ego will prevent this from happening, don't let it.

Be crystal clear why your business needs to exist. Not why you think it should exist. Deeply understand the customer pain points, business domain, competitors, and find your niche. Sales and product development get easier with this.

Deeply understand your cash flows months in advance. Identify warning signals sooner rather than later. Things won't magically get better, act now.

Stay organized, stay focused.

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