February 26, 2014

Bootstrap: Primary Focus: Sales!

A bootstrapped startup is a multitude of constantly changing variables along the path to only one goal: profitability day by day. Without this focus on Sales, it is all too easy to be distracted by one of many other shiny objects that masquerade as Important.

This focus on Sales is necessitated by the decision to Bootstrap the startup as much as possible. The more you bootstrap your startup the less control you give up in the way of equity to investors and others, and the less money you will have when/if you Exit.

The bootstrapping CEO will focus on Sales every day, and will know whether the day's sales will be in the Green, Yellow, or Red.  Sales per day will be posted on a graph by day, week and month.  The CEO will always know the Sales figures.  Per day, week to date, and month to date.

Green: sales are above the Target Sales per day.
Yellow: sales are below Target and above Break Even
Red: sales are below Break Even

If Sales are in the Green zone, you will have the resources to work on other Priorities.

If Sales are in the Yellow zone, you must be working on your plan to get them to Green (hiring additional/replacement sales people, email campaigns, adwords, etc). Other non-sales activities may be done, but only as a second Priority.

If Sales are in the Red zone, all other activities cease and total focus must be put on Sales.

The CEO who gets this will greatly increase probability of success.