This week, I’m trying an interesting experiment with my blog–and with you. I’d like you to try it out and participate, as well. This is time-sensitive and won’t be available after October 19 at 1PM Central time. (more…)

Why are you running a business? (Alternatively, why do you want to start one?)

Stop and think about this for a bit. You need a good reason as to why you’re doing this. Otherwise, you won’t make it very far.

I ask this question of other budding entrepreneurs a lot, and I often hear a response like “I just want to make some extra cash on the side.”

That is a vague, hand-wavy answer. (more…)

“How do I price my product?” another entrepreneur recently asked to an email list I’m on. “I’ve looked at our competitors, and I know how much it costs to produce what we offer. I think I know what my audience will pay. So–looking at all of that–what’s the best pricing strategy?” (more…)

As the owner of a startup, should you raise money for your business?

There are arguments both ways. In the software industry, developers are expensive, and it may take 12-24 months to come up with a viable product. Also, software companies are typically popular with acquirers, as the perception is that there is less work involved and they are more “scalable” than a service-oriented business. (Instagram had just 13 employees and was acquired for $1 billion.)

The flip side is that you can give up a lot of your company (and, perhaps more importantly, control of your company) to investors, and it may take you some months or years to find the right combination of code that customers will actually pay for. (At least in our market–business-to-business–we actually want people to pay for our software. I know, novel concept!)

To Raise or Not to Raise?

I’ve been on the fence about raising money for Whoosh Traffic. On the one hand, we are doing well–we have a Fortune 500 company using our rank tracker, as well as many other customers. Our business isn’t currently immensely profitable, but it is making enough to pay the bills.

If we don’t need the money, should we raise anyway while the climate for funding is exceptionally good (as it is now)? Or should we focus on product development and grow our way into strong profitability? (more…)

After 10 years in the Bay Area, and two years after that in San Diego, I’ve finally ended up in Austin, TX. I know you’ve been clamoring for a post on what I think about the startup climate (and the general “scene” here in Austin); this is that post. I’ll also outline when I think you should head to the Bay Area vs. another city like Austin. (more…)