Today I’m going to play a very thorny, ambiguous topic that generates heated debates … but I think worth comment and discuss its impact on the future of startup: the popular wisdom says you have to try to find income as soon as possible, something I do not think it’s as absolute as it depends on each startup, its business model … etc.
In case there is any doubt, I’ll start with a very clear statement about what I think:
Focus on profitability not always the right answer.
A startup is an experiment designed to discover a model of profitable and repeatable business scalable.
And the key here is the bold words: there is a business and should be managed as such, but an experiment where they do not know which is the best business model to exploit a customer need, which implies it first (even before to ask if profitability or growth) ALWAYS should be to create a product that really get add value (and thus keep users) … but once that is done, we worry about the scalability of the business model.Continue reading →