“It’s all about the X.”
I told that to a technical founder yesterday and it finally got through to him.
We were talking about their prospect pipeline, expenses, milestones, funding, and marketing activities.
There are many serious projects and initiatives that are distracting this founder now.
But there is one most critical thing for them to focus on above all else right now.
It’s time to get more X and stop doing everything else.
The X is REAL SALES with cash from paying customers. Actual revenue.
We had just been talking about investment valuation multiples and talked about 10X. As in 10 times revenues.
They are getting their first customers and a trickle of early revenue.
Not enough meaningful X (revenue) to change their situation.
Everything in their business is waiting for them to get actual revenues humming. To get meaningful revenues and cash coming in.
It’s time to focus all-in and do whatever it takes to close customers and get more cash coming in.
- Not on exciting partnership opportunities
- Not on new features in the product
- Not on more strategy, planning, or modeling
Not on new marketing ideas or sales messages
Just start closing real customers in bigger numbers.
Anything that isn’t that on the founder’s schedule or in their expense line is a distraction right now.
This is always harder than it looks. And simpler when you focus.
Everything gets easier with customers, revenue, and cash:
- The expense burn goes down. Maybe to zero.
- Investors will be interested. They are waiting for real revenues.
- Product investments will be more focused. Only build what closes deals and keeps customers.
- The real learning of marketing messages, sales tactics, pricing options, and everything else will begin. It’s not real unless someone is paying.
This founder has a great solution and is attacking an acute problem in a large market that competitors haven’t solved.
He just needs more X right now.
And less of everything else. For now.
When you want 10X or 20X, it’s all about the X!