The dilemma between increasing the user base and revenue in the B2C Internet Start Up has always been & will always remain!
The VC’s or the angel investors will rush in to push for revenue generation as soon as possible, but if you belong to the post Google era then it may so happen that you would push for more and more users to get enrolled to your service before you start generating some serious revenue!
Of course the revenue will always be your priority (you might want to differ if you are building a non profit organization) but at what cost?
Are you running behind couple of lakhs that you see in the short run or are you working towards the Million and Billions? Argument – ‘One in hand is better than the two in bush’, you might say so! But are you sure you have that 1 bird in hand? Think again, What kind of ‘time’ effort do you put in (as a team including the CEO, CTO, engineering and development team) to get that early (but small) business.
Remember, the smaller your start Up is, the harsher the deal will be on your set up. Since you do not have a ‘real’ existence you might end up doing a killing deal (killing as in ‘which might kill your start Up’ and an ‘awesome’ deal). The Customer would have an upper hand and your desperation to get the ‘first’ deal would be visible on your face. [All this assuming you go to the market, way too early] You might end up committing on something which was not ‘really’ on your product road-map.
For all you know, you might end up working for ‘that’ goal and not your REAL goal!!
There is no said rule for ‘when’ is the right time for the ‘first’ deal! But you should not be in a desperate mode to get it.
For all you know, you might end up working for ‘that’ goal and not your REAL goal!!
There is no said rule for ‘when’ is the right time for the ‘first’ deal! But you should not be in a desperate mode to get it.