Remove Employee Remove Revenue Remove Seed Money Remove Software
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Should Startups Focus on Profitability or Not?

Both Sides of the Table

You have to understand whether they’re likely to yield revenue growth in the near term OR whether you have access to cheap enough capital to fund your losses until your investments pay off. They have have raised $2-3 million, built a product that has some amount of market traction and got to annualized revenues of around $1 million.

Startup 418
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Should Startups Care About Profitability?

Both Sides of the Table

70–80% of the costs of most startups are employee costs so what you’re really talking about when a company is unprofitable is that they are growing their staff ahead of their revenue. Revenue When I look at an income statement I start by focusing on the revenue line. You need to understand the “quality” of the revenue.

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Timing: When to raise seed funding.

Scalable Startup

High growth startup companies need seed money to get things going. They need the money to rent offices, hire staff, and establish their initial presence (website, incorporation, marketing). The idea of outsiders entrusting them with a million dollars to spend is intoxicating. Without funding most tech startups will die.

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Mile-High disruption: Why Denver should be on your tech radar next year

The Next Web

In January, Denver will become one of the few American cities that allows its residents to purchase and recreationally consume marijuana, a move that is expected to create jobs and generate tax revenue. And it’s no wonder – the laidback, outdoorsy culture draws highly-skilled, overworked employees from larger cities.

Denver 166
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How to Start a Startup

www.paulgraham.com

I wanted to work in the pure, intellectual world of software, not deal with customers mundane problems. Some believe only businesspeople can do this-- that hackers can implement software, but not design it. But it turned outthey didnt like us, because our software was easy to use and we hostedthe site. Thats nonsense.

Startup 105
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How to Fund a Startup

www.paulgraham.com

It wasnt because they werent accredited investors that I didntask my parents for seed money, though. When we were starting Viaweb,I didnt know about the concept of an accredited investor, anddidnt stop to think about the value of investors connections.The reason I didnt take money from my parents was that I didntwant them to lose it.

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From Nothing To Something. How To Get There.

techcrunch.com

Also, for the full time coder, you may violate your employee contract especially in the area of non-competes or just plain piss off your boss when he finds out how much time you have been putting into a side project when deadlines were looming. Hopefully your idea of business model isn’t “ad revenue based”.