Bryan Roberts, venture capitalist, offers up wisdom for startups:
But the bottom line is that it is superbly hard, even in good economic times, to really impact the world with an innovative new product from a small company. The odds are hugely stacked against you.
True. And just because you’ve done it before or because your company is currently successful doesn’t guarantee success. My software business cannibalizes itself every few years – before somebody else does it. Each time we do it, we risk failure – we essentially become a new startup. It’s hard. Not everybody can do it. Not everybody should try.
Roberts’ advice about burn rate, value proposition and leadership are applicable if broad. Basically it boils down to:
a) make your customers money
b) spend less than you bring in (revenue, capital or debt)
c) repeat