Some key learning points for fast growth and start-up companies:
- Common misconception that start-ups need external finance.
- Taking other people’s money leads to bad choices – too much staff, computers and too much time.
- Don’t waste your time raising money. Prove the business on its own revenues.
- Make sure you are working on your best idea right now. If not, move on.
- Market share is not important. Profits are important. Look at Apple’s (l0w relative) market share on computer hardware and smart phones yet huge profits.
- Don’t chase the vanity of high revenues. Profits are all that matter.
- Number of employees is irrelevant – you can run a successful business with 1 employee.
- Build a business that is scalable – if you land a further £100,000 of orders, you don’t want to have to ramp up your employees and capital assets to match.
Hard to fault these words of wisdom – I would only substitute ‘cash’ for David’s repeated reference ‘profits’ as being key plus keeping the ‘WHY’ you are in business at the forefront at all times i.e. how will your business change the world?
Well worth watching.