MicroConf Lesson 1 – Cash Flow and Yearly Billing
This is part 1 of my Lessons Learned at MicroConf.
This lesson was largely inspired by Jason Cohen’s excellent MicroConf 2013 talk Designing the perfect bootstrapped startup (notes).
One of the few things I remember from my economics college courses, “A dollar today is worth more than a dollar tomorrow”.
Annual billing certainly has this benefit, but to a bootstrapped business, it has a much more important goal, Cash Flow.
We have all heard the saying, “It takes money to make money”. By allowing customers to pay for multiple months upfront, a business can utilize revenue sooner to help grow the business in a much more aggressive way (without the need to acquire debt).
This is a very simple concept, but it is also extremely powerful. Properly implementing this strategy could be difference between a great potential company that never really takes off and one that lasts for many years.
We have had (semi-)annual billing for KickoffLabs for a couple of months now, but we have not given it the priority it deserves. This will change shortly.