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Ask HN: idea for a startup, how important should be the path to revenue?

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11–20 of 23 posts

Re: Ask HN: idea for a startup, how important should be the path to revenue?

#11
The sole objective of any business is to make profit. How a business gets to profitability depends on a lot of variables, but the end goal is always to make profit.

Ergo, since you can't make a profit without revenue, your path to revenue is of utmost importance and should be one of the very first things you consider.

Re: Ask HN: idea for a startup, how important should be the path to revenue?

#12
In general, ideas without early paths to revenue are riskier (but have higher upside). Just because they don't have an obvious path to revenue doesn't mean their isn't one. For example, if you created a fun/viral facebook game, you could probably find a way to make money. But there are famous examples of high adoption startups that failed to monetize (recently: Xmarks).

It sounds like you enjoy products/coding more than you enjoy businesses. Be careful here- Every month that passes in your startup's life, you'll be spending LESS time on user-facing product/code and more time on marketing/sales/support/hiring/etc -- all of the things that fuel and sustain growth.

Re: Ask HN: idea for a startup, how important should be the path to revenue?

#13
My advice:

Start with something that generates revenue. This will give you experience with making money. It will give you experience completing a project. In other words, it will give you a track record.

A track record will help you attract people (co-founders, investors) to your next idea (or to your initial one). Revenue will allow you to pursue other ideas or expand your first business.

However, don't take any of this as advice to start your own company in lieu of taking a job.

Re: Ask HN: idea for a startup, how important should be the path to revenue?

#14
Unless you have a personal financial runway that you can / are willing to burn through or investors lined up, you should focus on the revenue-oriented ideas otherwise you'll simply run out of capital.

When you are deciding what your venture should be, I try to think about risk vs. reward ... make sure those "fun" (read: risky) projects have the potential to be home runs, otherwise it is a bad investment of your time and effort.

Re: Ask HN: idea for a startup, how important should be the path to revenue?

#15
Definitely focus on revenue. That way you work towards building a profitable business from day one. If you focus on 'money later' you are in effect first building a user base and then trying to monetise it. Just because you succeed at the first stage does not mean the second will be a breeze.

Also, keep in mind that a startup is really an experiment. Every day you should be learning something new and tweaking your business accordingly. By focussing on revenue you start learning how to make money from the beginning. If your initial focus is on a wide userbase, then you learn nothing about the money-making side which is likely to be very different from just getting users.

Re: Ask HN: idea for a startup, how important should be the path to revenue?

#18
Go for the job offers. I guarantee you'll find several areas that you'll find could vastly do with improving and ideas will come flowing in. Learn why they need improving, and build something to improve them.

If you have to think of a problem to solve, you won't know if you're solving it unless you've dealt with that problem directly.

Re: Ask HN: idea for a startup, how important should be the path to revenue?

#19
As somebody who just got our of school a couple years ago, and is trying get a startup of my own rolling, I have a few bits of insight. First and foremost, I'm not sure what your CS education was like but if it was anything like mine it was mostly useless. The vast majority of skills/knowledge I apply to development and design now were self-taught or I have picked up working as a developer for somebody else. It's easy to ready tons of great articles about practices, methods, etc but until you get your hands dirty and code some stuff that gets real world usage you may be at a disadvantage. For example, things like enterprise-level security practices, planning for scale, having redundancy and fall-backs in place are easy to envision and 'think' you planned for but until you are actually faced with a situation where those things happen you aren't fully prepared. My advice: score the best-sounding full time job you can get and see some live internal tools, business practices, backup processes, etc. Nothing says you can't code your dream product in your free time while still getting exposure to a real, working product/business (and making money to throw at your startup as well!)

Re: Ask HN: idea for a startup, how important should be the path to revenue?

#20
post #4

If you don't have an idea yet, why are you refusing job offers to start a yet-to-be-determined company? Anytime someone asks "What kind of business should I start", the correct answer is none. You should continue learning, working on things and find your passion. That passion will create an undeniable pull that will lead you to starting a business you'll stick with through good times or bad.

Learning from being employed is sensible and risk-averse but not the only way to learn. Why not learn by starting a company? If you happen to be driven by risk and easily bored by safety, it may be the fastest way to learn. It is also the direct way to validate what experience and knowledge you actually lack. While employment gives you the opportunity to learn a lot of stuff quickly, you also spend a lot of time not learning.

And the field of learning is narrowed down to your job description. Might be a plus or a minus. Starting a company enforces multiple broad and steep learning curves. Might be a plus or a minus.

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