Posts tagged: Cash
Getting Off the Ground, Lessons from Pearl Harbor
You have an idea, and you think it’s going to be “huge”. You are able to convince others that it will be so - partners, wives, mothers and friends. You spend a substantial amount of time preparing to launch this idea into the stratosphere of success. And then… And then you never actually see it launch. Rather, you see it stall, and collapse from all the attempted heavy lifting.
Remember the planes on Pearl Harbor at the end of the movie? They had to launch big jumbo bombers off of a short battleship of a runway. Realistically, that’s what we are faced with as entrepreneurs. We have a massive plane that can carry some serious ammo, and do some serious damage. But if we don’t get that plane in the air very quickly the only place that ammo is going, is down.
It’s all about the money
Your business can’t do anything without money. Cash is the lifeblood of your idea. You can’t take anything to market without initial costs. And if you think you’re going to have investors money as a pillow until you become profitable, think again. Investors don’t want to participate in anything that hasn’t been proven in the market. You’ll most likely find that until you’ve developed your product and have meaningful sales revenue investors won’t even look at you. And you certainly don’t want to keep gambling your own time and money away on an idea that you only “think” will be successful. You have to figure out the fastest route from your idea to money. Find the cheapest way to get ahold of inventory, or the most basic functionality of code that you can turn around and sell. Then once you have some cash, upgrade QUICKLY, turn around and sell it again.
Coming up, life changes
Babies will be born, future spouses will be courted right up to “I do.” Cars will be crashed, wives will want to buy houses. If your business isn’t functioning by the time these changes start taking place, you’re going to watch it crash and implode. If your business is successful, your team won’t walk away when change happens. But even if they did, if your business is already successful, you won’t have a hard time finding a replacement.
I know that getting it off the ground quickly is a lot easier to talk about than to do. Just focus on figuring out how to shorten iterations before product release, and think cash first perfection later.