The title, however, implies you should miss deadlines regardless of your readiness and you should never update. Wtf?!
191 karma · joined March 23, 2007
The title, however, implies you should miss deadlines regardless of your readiness and you should never update. Wtf?!
I don't think a lifestyle business is negative nor am implying that 37Signals is a lifestyle business. Just think you have it mixed up is all...
At the end of the summer, if we get a lot of us, we could create a a big page for all of to show off our stuff.
What do you guys think?
My point is this: Though they may have taken Jeff Bezos on for his expertise, Bezos made his investment to earn a return. You don't invest in private or public stocks in a capitalist world to do just fine. You don't start a business for that reason either. That's not greed, that's entrepreneurship.
If you look into startups in the medical, pharmaceutical, chemical and energy fields, you will see very high startup costs while sharing the high risk attached to software startups.
Even in software though, there are companies working on solving difficult problems that would require the work of scientists, engineers and administrators for 1-2 years. This would place you into that multi-million dollar category pretty quickly.
What if your new product, that has never been done before, will costs tens of millions? Surely those products have existed, and yet are still somehow able to do the prudent 'guesswork' to convince venture capitalists.
How do you know you are doing just fine? How much of the market have you captured? How big is that market? What if you had created your business plan 5 years ago and today you did triple your sales? Would that extra 2-3 weeks of work be worth it?
But, how feasible is it to start companies this way? Sure it may have worked well for them and it may even work incredibly well for your business. As hackers though, we know that just because something worked once, twice or 500 times doesn't mean it's the truth or will always work.
It's best to be prudent wherever possible and do some research into your market and pricing strategies. I'm not saying go off and create 5 year business plans, I'm just saying it definitely deserves some of your time cycles.
My company used to pay $750/yr for their anti-spam enterprise scanning package they sell as a separate product from Google Apps. When I contacted them, via email, about a bug I had found, they said email support was only available to customers that spend $1000/yr or more. They sent me a link to their Google forums...
The important thing to note here is that Google is not just competing with them now, they've commoditized the service altogether. This means that people are going to be less likely to ever want to pay for voicemail transcription.
Also, social network-type software requires a critical mass of users in order for them to be effective. If all of your friends weren't already on Twitter and Facebook, perhaps you wouldn't be either.
It's not as straightforward as selling your software from day one to make money.