Friday, September 7, 2012

Startup or Small Business

You are either running both or neither. The Silicon Prairie needs to get real.

Too many people hide behind the term "startup" and the title of the startup's manager, the "entrepreneur".  We hear the word "entrepreneur" and think of something shinny, exciting and new. "Small business owner" doesn't have the same ring to it, but it should. A startup exists in the mythical land of unlimited potential. The small business is, well, small. Every business starts as a small business. 

You're not a startup if you don't have any customers or revenue. If you can't create a customer, you're not going to build a business.

Narratives (the media) often focus on extremes, outliers because it sounds more interesting - it's fantasy. This often leads people to think "the idea" is enough and revenue, much less profit, becomes a secondary concern if it's a concern at all.

The "Silicon Prairie" would be immensely better off if we had more people focused on selling products and services to generate revenue and profit. "Supporting entrepreneurs" is great but supporting your new customers is better. Working on your "startup" is great, but you should be proudly building a small business as well. The search for funding has become the #1 objective for way too many people. You think you have a great idea? Try and get a customer to pay for it, you'll have your answer. 

Ideas are worthless. Value is created in implementation.

37signals founder Jason Fried shared his take on Fast Company last week, this should be required reading for every business owner and manager. 

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