And why is it that it’s always those who are barely scraping by who feel it’s their duty to offer unresearched, unsolicited and downright BAD business advice to those of us who are actually earning a decent wage quite effectively, thanks?
“Start with how you are going to profit and work from backwards from there. If you’re not spending less than you’re making, then you’re doing it wrong.”
Well, then a lot of companies are doing it wrong (including experienced entrepreneurs). There are many companies that have yet to turn profit. Mahalo, for instance, has yet to turn profit according to Calacanis. Does that mean that Calacanis is “doing it wrong.” No. This simplistic analysis that I’ve heard many people parrot stuck in my craw the first time I heard it, and it continues to.
It’s not so important that something turn profit right away (or even in 2 years). It’s important that you have a product that can turn profit eventually due to its inherent characteristics.
“There are many companies that have yet to turn profit”
If you reread my post, I wasn’t talking about companies that are yet to turn a profit. I was talking about companies with no idea if/how they might ever make money.
No profit yet does not equal no business model.
To take your Mahalo example, Calacanis is clear that their business model is selling advertising (as his previous startup Weblogs Inc was).
So true, so true!
And why is it that it’s always those who are barely scraping by who feel it’s their duty to offer unresearched, unsolicited and downright BAD business advice to those of us who are actually earning a decent wage quite effectively, thanks?
Update: John Coronella has posted on a similar topic:
“Sequoia Predicts Dot-Bust 2.0 – Hurry, Get a Business Model!“
“Be fearful when others are greedy and greedy when others are fearful.”
How true is this in the era of the Credit Crunch… I think I have to setup PayDay loan company right now.
“Start with how you are going to profit and work from backwards from there. If you’re not spending less than you’re making, then you’re doing it wrong.”
Well, then a lot of companies are doing it wrong (including experienced entrepreneurs). There are many companies that have yet to turn profit. Mahalo, for instance, has yet to turn profit according to Calacanis. Does that mean that Calacanis is “doing it wrong.” No. This simplistic analysis that I’ve heard many people parrot stuck in my craw the first time I heard it, and it continues to.
It’s not so important that something turn profit right away (or even in 2 years). It’s important that you have a product that can turn profit eventually due to its inherent characteristics.
“There are many companies that have yet to turn profit”
If you reread my post, I wasn’t talking about companies that are yet to turn a profit. I was talking about companies with no idea if/how they might ever make money.
No profit yet does not equal no business model.
To take your Mahalo example, Calacanis is clear that their business model is selling advertising (as his previous startup Weblogs Inc was).