simple math

October 23, 2016
math money business

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