simple math

This talk from 2008 was new to me and quickly cuts through much of the fog with respect to successful businesses and startups. There’s a mythology around what a successful business or product actually is which damages many from even attempting to enter the marketplace. This shouldn’t be–and isn’t– groundbreaking, but the fact that there’s a mystique around small businesses in some circles of software in particular make this a really entertaining talk about keeping things small and making $1MM. You don’t have to be the next Google.

He does some quick math as follows:

~2000 customers

x $40/mo

x 12 months

= $1,000.000/year

Then he works from a conversion rate to quickly determine # of signups needed per day to achieve the goal:

5% conversion rate

40,000 signups to keep 2k

(110 signups/day)

view the slides here