Traditional logic says that all startups are high risk, and small software businesses are startups; therefore, small software businesses are high risk. From this conclusion flows the culture and system of fundraising that surrounds us, i.e. the water we’re in.
But what if we could show that many small software businesses — particularly SaaS, are not startups, but are in fact de-risked — albeit small, businesses?
We could lower the risk premium of lending to these businesses.
What good is a de-risked used-to-be-called-a-startup business with a lower risk premium? …
This post, written in the spring of 2012, chronicles the second chapter of our struggle to bootstrap a weather startup. With the disappearance of Tumblr, I thought it had been lost forever — but thanks to the Internet Wayback Machine, it’s been resurrected for your encouragement.
When I finished my last bootstrapping Stormpulse post, I had a strong conviction that the difficult parts of starting up were largely behind us — that we were finally on the ascent from the trough of sorrows to the summit of startup success.
How wrong I was.
As Eric Ries has said, the key to the hockey stick curve is the long flat part at the beginning. This makes sense — if we think about a hockey stick in the literal, the long flat part is where all the leverage comes from. …
Data science is beginning to replace spreadsheets for entrepreneurs wrestling with uncertainty in their business models. How did we get here? What’s really new? And how can founders at any stage get better at predicting their future?
If you’re like most SaaS founders, you’ve googled for a financial template you can use to forecast your subscription business. As of the writing of this post, a query for “SaaS forecasting” returns 2.8 million results, many of them providing financial lessons and file downloads offering to help you see into the future.
Maybe you took advantage of one of these, at first; perhaps, eventually, you retreated to a blank spreadsheet — preferring an empty canvas of your own design over the learning curve of someone else’s formulas, or worse — macros. …