One Part of Scaling

One of the most interesting things I find about scaling a software business is that going from zero to one million in top line revenue is exceedingly hard.  The more revenue you generate, the easier it gets.  Going from ten million in top line is easier than going from zero to one.

Part of that is because at the beginning everyone struggles with product market fit.  Part of it is because of the risk tolerance of customers on the adoption curve.  In the beginning, customers are reticent to buy for a lot of reasons outside of whether your product works.

What if you aren’t there this time next year because you ran out of money and I have retrained people and committed resources to your product?

As your company grows, you have the proof points to show that you will be there and are building value.  Many times in scaling, what people are finding is that competitors are using an innovative product and they are losing business because they aren’t using it.  Fear of missing out is a great motivator to adding customers once you get momentum.

It’s just an interesting part of entrepreneurship to me.  If you are going to be a seed investor, you better enjoy solving that zero to one problem.

by the way, we are still raising money to name a hotel room after the Unknown Soldier.  Please support and share with your friends.