dcg

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dcg · 356d ago

Whats wrong?!

dcg · 391d ago

Fascinating, thank you. Best of luck. Do you think this was a bad stressor or good hormesis?

dcg · 528d ago

It would be easy to make the case that being in stealth is a bad idea. “Launch quickly” is such common startup trope it’s almost not worth discussing. But launching does have consequences:

* You’ll alert competitors. GCP famously didn’t invest in itself until AWS “launched” just how profitable it was.
* You lose mystique and allure. Mystery boxes are fun to open.
* You might get sued for trademark or patent infringement.
* You damage your company's brand if the product isn't good enough.
* And many others.

For the most part, these worrywarts are delightful intellectual games. Fun to think about, so we spend time thinking about them. But we’re not paid to solve brain-teasers, and truth is often simple: you are default dead until you come alive. Unless there is an incredibly specific reason why you’re unique, I would encourage you to launch. The world is really overloaded with news right now. The only way you’ll get users, attention, and revenue is if you make a fuss about it.

Remember, you can always launch multiple times, even with different names. Experiment and get out there!

dcg · 549d ago

That's a great question.

On the one hand, low margin businesses can get very large. Look at Amazon: https://bit.ly/3bsGdmg.
On the other, businesses traditionally associated with low margins also trade at lower multiples. If you want to raise money like a startup, you'll need a software multiple on your business (10-50X). Software business can command this because they often have 80%+ margin.

When you're a small startup, nobody knows about you. If you don't grow, you'll never get to worry about margin. You're dead by default. Ergo growth matters more. An important caveat here: if you grow with an unhealthy business model (e.g. WeWork), where you're negative margin, you'll likely fail. In a boom market it might take you years to fail, whereas in a recession only months.

So, as long as the fundamentals are healthy, growth first.

Shared by jackson · 569d ago · 32 comments
dcg · 569d ago

Most startups are born dead. Nobody knows about you. Until you become alive, you need to shout as much as possible to get the word out. As such I would just launch and get the word out.

One trick you can employ since you're small is that you can relaunch over and over, every time you have a new feature.

dcg · 569d ago

(Answered live.)

dcg · 569d ago

(Answered live.)

dcg · 569d ago

(Answered live.)

dcg · 569d ago

(Answered live.)

dcg · 569d ago

(Answered live.)