Revenue First Companies – How to Build a Startup

There are other companies who want to go for revenue first— typically, hardware companies, but not always. Sometimes on the web as well. The questions to ask are how long will it take to start doubling my revenue every month. When will I get to $100,000 a month? When will I get to $1 million a month? What are my assumptions about my business when I reach these milestones? What’s changed to get there? There’s nothing magic about these numbers, but when you start asking about, oh yeah, when am I going to get to $100,000? What has to happen in all those other pieces of the business model? Because if you think about it, you’ve been working hard on value prop, and you’ve been working hard on customer segments and customer acquisition and activation and channel. What did you need to do to get to the first $100,000 month, the first $1 million month? Boy, as a startup you feel great when those happen.

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