But when does this focus on startups and sky-high growth go from aspirational to wishful thinking? Or worse, from wishful thinking to an impossible game plan that crashes and burns? The answer depends on the situation.
VCs and Incubators Go for the Money
The main paths that get startups off the ground — angel investors, incubators, accelerators — are all built on models that take a big risk for a big payoff. Here’s an example demonstrative of the focus on growth that one major accelerator, Y Combinator, imbues in its classes. Now, it’s important to note that this isn’t an incorrect approach. Everyone loves money, and I certainly have no reason to doubt Sijbrandij can hit his numbers. But it’s not the right approach for all startups, and any entrepreneur who’s stuck with the usual options may not have the time to realize this.
…But Not All Business Models Should
Here’s a very different take from a business no one would term a failure, MailChimp, as explained in a New York Times interview with the email company. Or try Michael Scharf, the CEO of MyClean, Inc, who explains why the growth mentality didn’t quite work for him in this Indiehacker interview. ‘Everyone we talked to said, ‘You’re sitting on a gold mine, and if you pivot to enterprise, you could be huge,’ Mr. Chestnut said. ‘But something in our gut always said that didn’t feel right.’” The result? Scharf’s focus on quality and sustainability wound up gaining him revenue of $750,000 per month. Keeping a company’s culture healthy and high-quality is what matters most. And in the end, chasing a ten billion dollar valuation that will never happen is far worse for quality than sticking to a sustainable revenue that will. Read more advice on raising venture capital at TechCo
