Business Plans & Revenue Models: TWO Startup Must Haves
STOP the virtual presses? An ex-Google staffer reveals to the world “the most important thing to understand about new products and startups,” OR NOT!
Paul Buchheit’s Digg worthy headline doesn’t appear to deliver on the promised “one” thing, in good Digg-bait fashion! Buchheit’s startup advice column is composed of two parts: First, the reposting, verbatim, of seven paragraphs from a Marc Andreessen “the only thing that matters” post, and then, 15 rambling paragraphs which retrace Buchheit’s Gmail glory days, among other things, and conclude with the cryptic “Find the gradient, then follow it.”
IS “the gradient” the one most important thing startups must understand, according to Buchheit? If so, Buchheit ought to define precisely what he means by “the gradient.”
Before revealing the supposed “one” most important new products “thing,” though, Buchheit, disclaims that “in his mind” there are really two (lengthy) “most important” points. In readers’ minds, however, Buchheit’s one, no two, no, ok, one or two points (maybe), may be understood as: ATTITUDE, the right one, that is.
WHO has the right attitude? Google employee #23 may believe Google does (even though Buchheit lobs an odd, ”dig” at his ex-fellow Googler engineers)! After all, Google can not be “evil,” according to Buccheit himself!
Buchheit refers his readers to the Wikipedia (not Google Knol!) short, but glowing, entry on him, which not only credits him for the Web 2.0 movement, well before Tim O’Conference Reilly launched his financial ship, but also reiterates Buchheit’s claim that HE is the one responsible for the Googley ”don’t be evil” slogan. YAY?
HUMILITY, Buchheit then surprsingly lectures, is the attitude to have, a key competitive weapon. REALLY? How is that the Google kingdom of “rocket scientist” ego extraordinaires is on a power tear then, the very kingdom Buchheit proudly hails from?
Buchheit touts his startup FriendFeed’s ”release to the world” “launch.” FriendFeed’s “world,” for now, though, is but a “semi-release by private beta,” actually. Nevertheless, Buchheit assures he now has users that he can listen to.
Startup entrepreneurs nevertheless ought to really listen to two old-school “important things” lessons: Business Plans and Revenue Models.
WHY? Any worthwhile entrepreneurial endeavor requires not only an inspiring vision, but a solid business foundation upon which to build for success and a roadmap for executing intelligently to realize the (grounded) dream.
A good Business Plan is not an immutable mandate, it is a viable, flexible, target course of action for growing a sustainable venture. A good Revenue Model does not dismiss the need to cultivate users, it informs product development so that venture offerings present compelling, market-tested, real world value proposititions to users.
Will Paul Buchheit’s self-proclaimed knowledge of ”the most important thing to understand about new products and startups” propel his FriendFeed startup to Google like glory? UNLIKELY. SEE: Google Killer Cuill? Ex-Googler Startups Pose NO Threat: FriendFeed, Howcast, Zillow
PLUS: FriendFeed: Got Google Millions? Who Needs Revenues!
MORE: Antisocial Google: Googler Bradley Horowitz Mum and Google Knol: The End of Google.com, NOT Wikipedia and Startup Like.com: It’s the Revenues, Stupid!
ALSO: Silicon Alley: Crouching Tiger, Hidden Entrepreneurs and How Web 2.0 Meetups Displaced the New York Software Industry and Business Plans Help the Web 2.0 Kool-Aid Go Down and DayJet CEO: Business Models Drive Disruption, NOT Technology and CED Tech 2007: 30 Cool Startups, But NO Facebook Apps