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What Should A Startup Focus On First?

For many entrepreneurs, startup time is a frenzy. There is so much to do, only 16 working hours in the day…and just one of you!

So what do most new business owners do? They focus on what they're good at. And on the easy wins. They build out elaborate systems to help deliver on the promises they plan to make. And they strategize about how well things are going to go. And guess what they forget about? You guessed it…revenue.

My 8th grade accounting teacher drummed it into me: "The purpose of a business is to make a profit!" (Thanks Mr. Owen). So if you don't have cash flowing, you don't really have a business.

Get the cash flow started right up front. It allows you to proof-test the validity of your idea, test out the market, your suppliers, and everything else in the chain that is necessary for the delivery of your product. And over time you can build out the nifty supports needed to deliver on your promises in a more efficient way. But to start, you have to get out there and make that first sale. And keep making sales until you're so busy delivering that you have to take some time out to breath, reflect, strategize, plan, or systematize.

Avoid making large financial commitments upfront. Rather choose the pay-per-transaction option until you know for sure you're onto something, even if it costs you a bit more in the long run. 

It's a beautiful thing being in business when the revenue tap is on. Not so much when your burn-rate is sky-high, and you're listening to crickets waiting for your sales line to ring.

2 Comments

  1. "crick crick"

    cash flow is king

    • July 8, 2014
    • Reply

    For sure!

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