The main purpose of a business is making profit, online tech
startups included, unless you are starting a non-profit organization. Going
through startup advice available online, most of the advice borders on the
line-forget about making money and instead concentrate on gathering yourself an
army of users. How you can do that without the money to build a solid product,
advertise, legal services, office space, internet and employee salaries; is
still a puzzle to me.
While many argue that initial you may need to just
concentrate on improve your product and gain some traction and try to raise
some investment. To me it’s a valid point, but one that fails to put into
perspective the business model. Unless you can get more funding your company
faces a risk of suffering still-birth. Having a solid business plan from the
beginning sounds logical to me, even if you get more funding, making your own
money makes it easy to project when you can stand own and how much you need
from the investors and more still whether it’s a sustainable business model or
not , early on.
Unless you are rich already, you live in Silicon Valley and
have raised a boatload of cash; I don’t how one is supposed to earn a living
doing what you love. Without money to pay the bills, I don’t see how one can
even concentrate on the idea; getting a job might be a good idea.
Entrepreneurship is supposed to be a liberating, but how can you do that
without the ability to make your own money?
Also ordinary users do not seem to mind at all, your
monetization efforts. Almost the question that always comes up with most
people, how do websites like Facebook make money? In Africa some people have
never seen ads on Facebook and it puzzles them when they read about how it’s
making its owners billionaires and millionaires. I overheard someone suggesting
that every time you get on Facebook, the money you get charged by the internet
provider, they also get a share. Obviously this sounds ridiculous but the fact
of the matter even the users expect you have some form of a monetization plan.
If the users do not mind, why not try it?
I maybe totally wrong to think that the main purpose of
starting a business should be making profit, and before you can start thinking
about anything else you should have a business model on how you are going to
make money. I would like to hear what
you think and hopeful understand what I do not seem to be getting through.
Yes, it's a problem when you are creating something new, earlying a new application, but this days exist the "Angel Investors" to your app, another way to make profit is winning prizes on Startups competitions like Wayra, The Next Web Latam.
ReplyDeleteRegrets from Colombia ;)
It's probably a good way of create runway capital but I don't think it will be viable in the long run.
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