Don’t Found a Company unless you Love Excel
“(Venture backed) Startups are all about math. Sooner founders realize that, the less emotional trauma & confusion they’ll experience.” - Om Malik (@om)
Excel. Yes, you may scoff at it because it is a Microsoft product. Or you may thumb your nose at it because only accountants use it. Or heck, you may not see at all why it relates to a founder of a startup.
But you’d be wrong. Don’t start a company unless you love Excel.
The reason is pretty simple. Your job as a founder is to make a math equation work. R > E. You need to show how you can make the revenue you earn from a customer exceed the expenses you incur to get that customer. And you need to do it at “scale”, whatever that means in your world. Of course there are other costs and all, but at the core you need to prove on a small scale that you can get revenue above the costs to get that revenue.
Seems simple. Seems...
Continue reading →