Dear Startups: stop begging investors and pitch your clients
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Dear Startups: stop begging investors and pitch your clients
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Re: Dear Startups: stop begging investors and pitch your clients
#2This is a slightly ignorant claim to make. There are plenty of startup companies who have different business models than just "make a program and sell it".
Additionally, you're assuming that every startup is also a saas startup. Most aren't, meaning they might have a thousands in lets say production molds and an order of 10000 units from retailers. They'll need the investment money to help them fulfill orders and grow.
Lastly for many other startups there are costs that exceed past general development. Security is a good example of one of these large costs especially if you're dealing with money or private data in any way. These additional necessary costs could be minor but for many startups they're large and unable to be paid for by the hopeful entrepreneur.
Re: Dear Startups: stop begging investors and pitch your clients
#3Another article about stop thinking investment and do something that magically will work without the initial money inyection.
I think these articles are good motivators but they don't fit in the real world. Let me sumarize my view point:
1. You can develop your MVP at home with your buddies, yes, but maybe you need money to make something crucial that requieres some expert contracting to get it done. 2. You can make a web app, yes, but maybe you need money to get some important licences to operate in the real world. 3. You can launch your project with a pitch, but, it will take ages to reach profitability without proper advertising campaign.
I guess some startups became important businesses in less than a month without money inyection, but they're not the rule and, in most cases, they've managed to get important attention from the press.
Re: Dear Startups: stop begging investors and pitch your clients
#4Another article about stop thinking investment and do something that magically will work without the initial money inyection. I think these articles are good motivators but they don't fit in the real world. Let me sumarize my view point: 1. You can develop your MVP at home with your buddies, yes, but maybe you need money to make something crucial that requieres some expert contracting to get it done. 2. You can make…
Totally agreed. I'll simplify this even more - people need to pay bills.
Re: Dear Startups: stop begging investors and pitch your clients
#5Another article about stop thinking investment and do something that magically will work without the initial money inyection. I think these articles are good motivators but they don't fit in the real world. Let me sumarize my view point: 1. You can develop your MVP at home with your buddies, yes, but maybe you need money to make something crucial that requieres some expert contracting to get it done. 2. You can make…
Totally agreed. I'll simplify this even more - people need to pay bills.
I agree that business often need some kind of investment to help get started but it is not always the case.
It feels like the end game of any startup these days is to close a round of investment from a top-tier fund as if that creates a business in itself. That point is very much just the beginning and then the real work starts.
We need to get back to thinking of investment as an aid to building a sustainable business not the first step to a sale to {insert large tech firm here}
Re: Dear Startups: stop begging investors and pitch your clients
#6Pitching to a large client puts you at risk of becoming a contractor for that client. This is a dangerous trap if your goal is to sell a scalable product.
Re: Dear Startups: stop begging investors and pitch your clients
#7Another article about stop thinking investment and do something that magically will work without the initial money inyection. I think these articles are good motivators but they don't fit in the real world. Let me sumarize my view point: 1. You can develop your MVP at home with your buddies, yes, but maybe you need money to make something crucial that requieres some expert contracting to get it done. 2. You can make…
Yeah, sure - in most cases you can't develop your MVP without money (and in my opinion making it at home with buddies within months doesn't make any sense), but investors are not the only and optimal cash source. It doesn't cost you a lot to start selling your product and get paid by first customers. I started 3 companies like that - I sold the product first and after that started producing it. I think you rather create obstacles and excuses than try to overcome them ;)
Re: Dear Startups: stop begging investors and pitch your clients
#8Argh. Pitch TO your clients. TO your clients. English - use it right.
Re: Dear Startups: stop begging investors and pitch your clients
#9There is a difference between clients and customers. If I ran a startup I would prefer to have customers not clients.
You don't know how an idea will turn out until you build the mvp. The Only validation you should need is that you are building something to solve a pain you are having.
It's easy to go overboard seeking validation data for an idea, don't forget to trust your intuition, its often a more accurate source of data.
Re: Dear Startups: stop begging investors and pitch your clients
#10This is a slightly ignorant claim to make. There are plenty of startup companies who have different business models than just "make a program and sell it". Additionally, you're assuming that every startup is also a saas startup. Most aren't, meaning they might have a thousands in lets say production molds and an order of 10000 units from retailers. They'll need the investment money to help them fulfill orders and gro…
I think you'd agree that any advice is completely universal. Selling preorders is a solution for most cases, but we of course can discuss the exceptions. If your selling process is different than "get money -> ship the product" than you will always encounter cashflow problems and maybe it isn't so wise to start such a project as a startup.