cardboard or concrete #1
while every tech start-up is unique in some ways, I’ve noticed the business strategy tends to follow one of these themes.
1. build a cardboard foundation, grow fast, and buy the concrete later
or
2. lay the concrete foundation (with re-bar) first, and build a room at a time.
Both strategies have been proven to work (and fail!) but the path looks very different. I think about this a lot given the work I do, and I’ve seen both from the inside in the past. This topic will be explored through a series of posts focusing on some of the key areas of tech start-up business strategy. The right answer is out there…
choosing a trajectory - there are times when ramping up fast (and spending $$ fast) are necessary, and there are times when it is just plain foolish. How do you know the difference? How can you be sure? The truth is that the answer depends; the decision is almost always situational. (<
Conundrum #1: spend venture money as if it was your own, but don’t miss the growth numbers in the plan or we won’t give you more
Conundrum #2: customer acquisition is key; it validates the product and the market, but don’t chase customers or do one-offs as it will hurt you in the long run
Conundrum #3: F500 enterprises don’t’ like to buy from start-ups (for a million reasons, but they still do), so if that’s who you are selling to you must appear as competent and well resourced as the 800lb gorilla you are selling against, but see Conundrum #1. now what?
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