All #AskJason: In launching an MVP, is it better to focus on number of users or revenue stream?

TL;DR

Should startups focus on acquiring users or generating revenue? The answer is both.

Transcript

okay let's take another question this one is from Michael in launching an MVP is it better to focus on acquiring a large number of users or demonstrating a revenue stream great great question this is the best question so far absolutely Mike let me just rephrase that question which is when you're watching your startup should you focus on acquiring u... Read More

Key Insights

• 👤 Startups should prioritize both user acquisition and revenue generation.
• 🆘 Revenue from the beginning can provide credibility with investors and help in marketing and hiring.
• 💗 A small revenue stream can be leveraged as a competitive advantage against faster-growing competitors.
• 🔁 Investors pay attention to transaction size and repeat transactions when evaluating startups.
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Questions & Answers

Q: Should startups prioritize acquiring users or generating revenue?

Startups should focus on both acquiring users and demonstrating revenue. By having both, they can attract investors and potentially outperform competitors.

Q: Why is it important to have revenue from the beginning?

Having revenue early on gives startups credibility and allows them to reinvest in the product. It also helps in discussions with investors and can be used as a weapon in marketing and hiring against competitors.

Q: How can a small revenue stream lead to significant growth?

Even if a startup is growing slower than competitors, having a revenue stream enables them to hire sales executives, invest in marketing, and outperform competitors in the long run.

Q: How does revenue impact investor confidence?

Investors often look at the size of transactions and repeat transactions when evaluating a startup. Even a small revenue stream can lead to meaningful discussions and make investors more confident in providing funding.

Summary & Key Takeaways

• In 2016, startups should strive to acquire users and generate revenue simultaneously.

• Having monetization turned on from the beginning can lead to more credibility with investors and potential growth opportunities.

• A small revenue stream can be used as a marketing and hiring tool, giving startups an advantage over competitors.