Tag: Michael Raynor

“Prediction requires the identification of a pattern that repeats, because a pattern is what allows you to use what has happened to infer what will happen next.” – Michael Raynor

And this is precisely the problem with startups.  By definition, a startup is new.  It’s never been done before.  There are no patterns.  There is no history. You can;t predict what comes next.

This translates to risk which scares people.  It’s why bankers won’t let you borrow money against your own house to start a new venture.  You don’t yet fit nicely in a spreadsheet.

This is why it’s so important to get to first customers and quickly as possible.  It is the single best thing you can do to mitigate risk.  Sell what you have a soon as possible, even if it is not perfect.  Once you have customers, they will lead to in the direction of perfection.

 

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