In these times when startup founders dominate the newspaper headlines and receive adulation on the basis of quantum of money they raise, every founder aims to have a billion dollar (valuation) company.
While ambition is good, it is essential to channelise it in the right direction.
And for any business, the holy grail is profitability.
If the business is profitable, the unicorn valuations would not be too far off, but if you focus on valuation through fund raising, the profits might never come during the lifetime. The world is rife with second type of examples.
Decacorns (10XUnicorns) are still struggling to make a dime of net profit.
Focus should be from Day 1 to build a $1000 monthly net profit startup, rather than be a paper unicorn.
Profit is sanity, rest all is vanity.
“Individuals and startups need to be self-sufficient and that’s why getting your project to ramen profitability is such a vital and game-changing milestone. When you require a salary to make a living, or your company needs investor money to continue to exist, your autonomy and creativity become severely limited.
Deciding to raise investor funding and swing for the fences often means chasing someone else’s dream, not your own. When you set out to build a billion-dollar startup, you’re often implicitly following another’s path to success rather than thinking independently.”