the anatomy of a tech startup
Saw this at Focus, but wanted to share it here:
If we look at SalesKB, we see:
- founded by 2 people
- supported by work/consulting
- spending about $300/month on hardware (outside the range)
- spending WAY more on resources than $500/month
- we are 4 months old (from the moment we started building the version 1)
- we are ready to start selling the product
- and i do guess we'll be break-even in 3-12 months
Although that number is weird: most startups spend $500/month but can't break-even? This shows the flaw: startup founders don't count what they need to pay themselves with the startup as a cost. I mean, if I took out all the money I pay myself from rykorp, it'd be hugely profitable!
As for problems? I feel with SalesKB (and I'm normally a pessimist!), things are going remarkably well. We delivered the v1 prototype (only cut out two "major" features, which turns out weren't major features at all) on budget (and relatively on-time), we have an excellent go-to-marketing plan, and we don't struggle much with time issues.
It's actually been a really smooth ride so far (no drama, no unsurmountable roadblocks). Me and the other half of SalesKB have trusted each other with decisions, we've focused on the important part of the product, and we've had fun doing it. When SalesKB becomes super successful and they ask about the hardships of starting a company, I'm not sure I'll have a good story. Our hardest problem is usually deciding where to eat when we meet up.
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hapy