Thinking of starting an online company? Follow these rules…
Are you thinking or planning to start an online web company? Then follow Evan Williams must read checklist of things to consider if you are going to run a web startup. I particularly like:
#7: Be Greedy
It’s always good to have options. One of the best ways to do that is to have income. While it’s true that traffic is now again actually worth something, the give-everything-away-and-make-it-up-on-volume strategy stamps an expiration date on your company’s ass. In other words, design something to charge for into your product and start taking money within 6 months (and do it with any of the online merchant accounts). Done right, charging money can actually accelerate growth, not impede it, because then you have something to fuel marketing costs with. More importantly, having money coming in the door puts you in a much more powerful position when it comes to your next round of funding or acquisition talks. In fact, consider whether you need to have a free version at all. The TypePad approachâ€”taking the high-end position in the marketâ€”makes for a great business model in the right market. Less support. Less scalability concerns. Less abuse. And much higher margins.