Defining success and getting outta dodge
So you've built your prototype and are suddenly making money. Now what direction do you take? In what sense do you measure your companies success? For many software companies they are always asked "What's your exit strategy?" by VC's. It's something that I've been giving a great deal of thought to, at what point will I stop doing what I love so much?
Now that you are now the hottest shit since "Vampire Zombie battles" in the tubes and you have developed the coolest application ever, what are you defining your success to be? When looking at an investment I would imagine that questions will be asked of your user base. Whats your demographic, how many do you have and are they paying money for your app? You can have a million people using your service, if you are not making revenue off of them, well, what use are they? Obviously you have not thought this whole business thing out properly then eh? With Google having re-defined free service offerings apparently no-one wants to pay for anything anymore. Just remember that if it's a good enough service, the money will come. But to get them hooked, give them an incentive, get them thinking that this is the best service since bread was sliced and they just cannot live without it.
So, the business is now profitable, money is coming in, but you want to go to the next level. So now you are suddenly being told to sell, sell, sell your baby to a larger organization. Being bought out by the larger business is heartbreaking stuff, Watching it being taken in the wrong direction is something which would tug on the heartstrings of any entrepreneur. The wad of cash that is now your bed will defintely help, as will the steady supply of toilet paper printed with presidents faces but should you give up something that you have worked so hard for for so long? I guess that is a decision everyone must grapple with one day, take the money, live the life of luxery, pay some bills or continue on with your company.
A huge wad of cash, is that success? It's everyone's wet dream, the VC's swoop in, give you loads of lolly to go public with your company. This is the pipe dream, something that can happen to the rare few in their wildest fantasies. You would want to be offering something truly unique in order to get to this level, not everyone can be the next Google or VM-Ware. The founders are usually kicked off to the side at this point, left to come out during press conferences and used as the face of the company, in the meantime, a new CEO is hired and all the important decisions are now made by the board of directors. Everyone has a price, it's just finding what the currency is that is the problem.
Normal startups outside of the Internet space take years upon years to flesh out and develop, software startups are no different. Give them a chance, give them some love, sweat and blood and they will repay you back tenfold. The reason why I'm looking to commence my own business is that I want to develop something that that succeeds, something that gives people a bit of freedom in their day to day lives and something that I am satisfied with. I just hope that I never forget the reason I wanted to build a company; corporate life does not interest me. Being like any other company does not interest me, being exciting, unique, innovative and loved by your customers, I don't know a single entrepreneur who does not dream of that. To me, that defines success, not money nor fame. Doing a good decent job and knowing that you have helped people out, that is my motivation. How many of you feel the same?
Write a Comment