Page 103 - The 7 Day Startup: You Don’t Learn Until You Launch - PDFDrive.com

What are you working on today that will

make you indestructible tomorrow?

4. Simple Business Model

Having a simple product and a simple value proposition makes everything else
easier. From elevator pitches to growth tracking to hiring—the more complex a
model, the harder it is to know when things are going well. If you can’t measure
it, you can’t manage it.

A business with one basic product like Buffer or Dropbox is a growth machine.
If you want a scalable business model, it’s much better to work on one simple
offering than thirty different ones. Keep this in mind as you focus your attention
and don’t get distracted. Follow the momentum.

5. Recurring or Predictable Revenue

Having a simple MRR model makes everything easier. There are other benefits
like predictable revenue, simple metrics, simple goals, easy-to-see
growth/growth sources, easy resourcing/scaling, and constant sources of
motivation. A year in and I am still manually updating the MRR on a daily basis
and giving my team members virtual high-fives.

Quite often, in a recurring monthly business, a bad month is just growing less
than every other month. There isn’t a huge roller coaster of good months and bad
months like you have in other businesses. Increasing the amount of money you
are going to make next month and every month after is a great feeling. A simple
MRR model has an inherent growth trait. The equation is simple: Have more
customers signing up than leaving, and you will grow.

Not every service suits a recurring model, so you could think about other ways