Everyone tells you the same thing when you start a company. Chase growth aggressively. Raise as much money as possible. Scale fast before competitors do. Furthermore, this advice sounds smart. Moreover, it comes from successful people. Yet here’s the problem: most startups that follow this advice fail. In fact, the advice that sounds successful is actually the path to failure. Rather, the startups that survive and thrive are doing something completely different. Therefore, if you’re taking the standard advice, you’re probably heading toward disaster. Once you understand this, everything about your startup approach changes.
Why The Standard Startup Advice Is Broken
Think about what most startup advice focuses on. It’s all about growth numbers. Furthermore, it’s about raising funding rounds. In the same way, it’s about moving fast and breaking things. Therefore, you feel pressure to hit certain metrics. Moreover, you feel like you’re falling behind if you’re not growing at a crazy pace. However, this thinking destroys most startups. Thus, you chase growth that doesn’t make sense. In addition, you burn through cash to hit numbers that don’t matter. As a result, you run out of money and die.
Consider what actually happens with this approach. You raise money. Furthermore, you hire aggressively. Therefore, your team doubles in size. In the same way, you rent fancy office space. Moreover, you spend money on marketing that doesn’t convert. Thus, you have lots of activity but not real progress. Furthermore, you’re burning cash like crazy. In addition, you’re not making money. Therefore, you need another funding round. Moreover, if you don’t get it, you’re done. Because of this, you’re on a treadmill that never stops. Rather, it just goes faster until you fall off.
Additionally, here’s what the growth-at-all-costs people don’t tell you. Most startups with aggressive growth strategies fail. In other words, they run out of money before they become profitable. Furthermore, they become too bloated to survive downturns. Thus, when the market changes, they collapse. In the same way, the ones that survive are usually the ones that grew slowly and sustainably. However, nobody celebrates those companies. Rather, we celebrate the unicorns. Therefore, we ignore the graveyard of failed fast-growth startups. Because of this, bad advice becomes popular. Moreover, people keep following it. As a result, more startups fail.
What Survival Actually Looks Like
So what do the successful startups actually do? First, they stay focused on making money. Furthermore, they don’t chase growth for growth’s sake. Therefore, they ask: does this customer actually want what we’re selling? Moreover, will they pay for it? Thus, they validate demand before scaling. In the same way, they don’t hire until they truly need people. In addition, they avoid unnecessary expenses. As a result, they burn through cash slowly. Furthermore, they reach profitability sooner. Thus, they’re independent and free.
Think about the difference. One startup raises a million dollars and spends it all in six months on growth that doesn’t work. Consequently, they need another round. However, another startup raises a hundred thousand dollars. Furthermore, they spend it carefully. Therefore, they’re still going strong after a year. Moreover, they’re starting to make money. Thus, they don’t need outside funding. In the same way, they control their own destiny. Because of this, which startup is actually winning? Obviously the second one. However, the first one gets all the attention. Therefore, people copy the wrong approach.
Additionally, the sustainable approach gives you options. In other words, you’re not desperate. Furthermore, you can say no to bad customers and bad deals. Therefore, you can be selective. In the same way, you can wait for the right opportunity. Moreover, you can negotiate from strength. Thus, you have agency over your business. Because of this, sustainable startups end up stronger than fast-growth startups. Furthermore, they make more money in the long run. In addition, they’re less stressful to run.
Profitability Is Actually The Real Goal
Here’s something startups miss: profitability should be a goal from day one. In other words, you should be thinking about how to make money. Furthermore, you should be working toward it. Therefore, you’re not dependent on investors. Moreover, you have real validation that customers want what you’re selling. Thus, you’re building something real. In the same way, you’re building something sustainable. Because of this, profitability isn’t something you worry about later. Rather, it’s something you build toward from the start.
Think about how different this mindset is. Instead of “how do I raise the most money?” you ask “how do I make money with the least cash?” Therefore, you build lean. Furthermore, you test ideas quickly. In the same way, you validate with customers before investing heavily. Thus, you avoid expensive mistakes. Moreover, you learn what actually works. In addition, you adjust course quickly. As a result, you win.
Additionally, consider a practical example. One startup spends fifty thousand dollars building an elaborate product. Consequently, they launch and nobody uses it. Moreover, they’ve wasted money. However, another startup spends five thousand dollars. Furthermore, they get customer feedback. Therefore, they adjust. Moreover, they spend another five thousand dollars. Thus, they’re learning cheaply. In the same way, they’re moving toward profitability. Because of this, they can iterate for years. Moreover, the first startup is already dead. Therefore, cheap iteration beats expensive perfection.
The Revenue Problem Nobody Admits
Here’s what nobody says out loud: most startups that fail never figure out how to make money. In other words, they have users but no revenue model. Furthermore, they assume they’ll figure it out later. Therefore, they focus on growth. However, this is backwards. Rather, you should figure out revenue first. Moreover, you should prove customers will pay before you scale. Thus, you avoid building something nobody will ever pay for.
Think about how wasteful this is. You spend years building a huge user base. Furthermore, you’re burning through money. Therefore, you finally try to charge customers. However, they leave because they’re used to it being free. Moreover, nobody pays. In the same way, you go out of business. Thus, all that growth was worthless. In addition, all that money was wasted. Because of this, figure out revenue early. Furthermore, prove that customers will pay. In addition, then grow. Thus, you’re building something sustainable.
Additionally, charging from day one has benefits. In other words, it forces you to solve real problems. Furthermore, customers won’t pay for anything. Therefore, you focus only on what matters. In the same way, you get honest feedback. Moreover, paid customers are your real users. Thus, you learn faster. In addition, you adjust faster. Because of this, early revenue changes everything. Furthermore, it’s the reality check every startup needs.
Building The Right Way
So what’s the actual startup approach that works? First, start with a real problem. Therefore, find something people desperately want to solve. Furthermore, make sure they’ll pay to solve it. Thus, you’re building something with clear value. Second, build the minimum product. In other words, don’t overengineer. Furthermore, just solve the core problem. Therefore, launch quickly and get feedback. Moreover, customers will tell you what actually matters. Thus, you learn what to build next.
Third, charge from the beginning. In other words, get customers paying. Furthermore, even if it’s a small amount. Therefore, you validate the business model. In the same way, you get honest feedback. Moreover, you stay focused on solving real problems. Thus, you build sustainably. Additionally, fourth, grow carefully and intentionally. Furthermore, only hire when you need people. Therefore, keep expenses low. In the same way, focus on profitable growth. Moreover, don’t chase vanity metrics. Thus, you build a real business.
Finally, aim for profitability as soon as possible. In other words, this is the real goal. Furthermore, this is what makes you free. Therefore, every decision should support this goal. Moreover, don’t get distracted by funding or growth theater. Thus, you stay focused on what matters. In addition, this builds a lasting company.
The Market Is Changing
The good news is that the market is shifting. Furthermore, investors are getting smarter. Therefore, they’re funding sustainable businesses instead of burning cash. Moreover, the era of growth-at-all-costs is ending. Thus, doing things the right way is becoming more valuable. In the same way, bootstrapped profitable companies are getting respect. Additionally, this means now is the time to build differently. Furthermore, you have an advantage if you focus on profitability. Thus, you can win by playing by different rules.
For a detailed breakdown of why growth-at-all-costs doesn’t work, explore why chasing growth at all costs fails and what actually works. This article shows why the standard advice is broken. Furthermore, if you want to understand why steady progress beats speed, read about the new startup playbook and why steady progress wins. It explains exactly what the better approach looks like.
For practical startup guidance, the SBA offers free resources and mentoring to help you build sustainably. Additionally, Indie Hackers is a community of bootstrapped founders sharing real experiences and strategies.
The Real Takeaway
Stop following the standard startup advice. Instead, build a sustainable business. Furthermore, focus on profitability from day one. In the same way, charge customers early. Moreover, grow at a pace that makes sense. Thus, you’ll build something that lasts. Furthermore, you’ll have freedom and control. In addition, you’ll actually make money. Because of this, the startup path that sounds boring is actually the one that works. Therefore, ignore the glamorous failure stories. Rather, focus on being profitable and sustainable. And watch how that creates real success when most startups fail.
