Instead of dreaming of being a unicorn, why should you choose ‘Microstartup’?
We often see the media reporting on a large-scale startup that has been funded with millions of dollars or a large-scale startup that has been acquired by a technology giant for billions of dollars. … These startups appear simple on the surface, but in reality, it requires a large amount of capital and human resources to grow to a profitable stage.
And unfortunately, most startups have a hard time getting to that scale. But many entrepreneurs look to these hefty valuations as one of their ultimate goals.
Recently, I was talking to a friend who runs a Marketing agency and she said that she had a lot of problems working with a client, an early stage funded startup. The problem is that her client wants to ‘scale up the company as quickly as possible’ and ‘burn’ a lot of money on advertising in the hope of being able to grow and get a higher valuation in the next round. according to.
In her words, ‘they want to quickly become a unicorn’. As soon as I heard this, I was surprised. Because these are the founders who think that the only way to run a successful startup is to keep raising money until the company is worth more than a billion dollars.
Of course, there are actually plenty of other ways to grow startups. And one of the ways is to think of it as a “microstartup”.
So what is Microstartup?
Currently, there is no definition that can accurately name “microstartup”. But they usually have some properties as follows:
1. Usually run by a maximum of 1 to 5 people
2. Only a small amount of capital is required to get started
3. Usually the goal is to be able to generate some kind of revenue
What’s interesting about microstartups compared to other typical startups is the intent to make money. Revenue may not be the goal of some startups (especially those working in innovation, technology, etc.), but it is an important goal of one. microstartup company.
Here are 2 entrepreneurs that implement this startup model that I really love
The great thing is that they have implemented very simple ideas but are very effective and bring in a ‘huge’ source of income.
Find a way to solve the problems that you, your friends, your loved ones or anyone around you have
Your goal is to find solutions or products that people are willing to pay for. If you look at the products posted on Twitter by these two entrepreneurs, you will see that what they do is not too big, can’t change the world, but it is very practical, can solve problems. annoying problem of people and make them willing to spend money.
Try to generate income by solving problems in a unique and effective way. They will help you expand the range and diversify products in your portfolio.
How about development?
Of course, not all microstartups are able to generate regular recurring revenue for entrepreneurs. Some of these may be acquired by large companies before they can scale.
Although not officially a microstartup, Wordle was purchased by the New York Times for more than $1 million. While this is not the ultimate goal, with such speed and scale of development, it is eligible to be acquired at this price.
Bigger tech giants have also acquired other companies like Vine, Luma (Twitter’s Vine and Instagram’s Luma before being acquired by Facebook).
Both companies were acquired within the first year of operation. While monetization may be the goal of some microstartups, scaling and accelerating growth is also another way to get noticed and acquired at a higher price point.
And of course, being acquired can be one of the good strategies for building a microstartup. But a safer option is always to pursue and develop a product that can bring you steady recurring revenue.
It’s time to find the right problem to exploit
There are many problems happening around us every day. And everyone has their own solutions.
Personally, I can name a ton of problems that I face every day that I’d be willing to spend a little money on to ease the trouble.
So why not start learning about the world around you, discovering what you can do with your existing knowledge and skills. Remember not to complicate matters. Think simple and persistently solve problems that people are willing to pay for.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
