Bengaluru

Which revenue road to take?

Ramesh Loganathan

BENGALURU: I met a startup entrepreneur a few days back that is going through its first pivot. It is at crossroads that is very common to any product startup - there are two sources of revenue,  each with a prospect sample of one but a possibility of more. Constraint being each needs a different non-overlapping capability. This is probably aggravated by the need for a different approach to reach each of these two prospects. How does one use the limited resources to achieve the desired results?

Few key considerations will make it easier. First, look for which of the two the customer is ready. Often there is interest and soft commitment, but the path to this becoming reality and paying customer can often be long and or unpredictable. So focus should be on whichever is realistic and nearer.

The second factor, is if there is a multi-opportunity. This means if a partner or channel that can benefit from having the startups product as part of their solution and the value is compelling enough for them to push it forward to their customers. This will most often need some integration capability, and time to work with the channel partner.

The relationships with the initial prospects is the third factor or the influence the startup has. Often this need tends to be under estimated. But this will have a multiply-by-zero effect, if the opportunity is good and prospect is in place and there is no direct influence on the prospect. This is probably the most critical.

Yes, its always easier said than done. It is never easy choices at these crossroads. But then whoever said startup journey is simple.

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