Saturday, June 07, 2014

1871 CEO Howard Tullman on "How can I tell my business is doomed?"

          How can I tell my business is doomed?

"You need to set real metrics, in concrete, and then everyone has to agree to live by them without excuses or exceptions," says Howard Tullman, CEO of Chicago startup incubator 1871 and a guru of sorts to young entrepreneurs.
He says three factors stop companies from getting the message that their formula is flawed: First, revenue climbs steadily, but only when tied to increased expenses—profits remain flat.
Second, slow growth is attributed to a stream of special circumstances, rather than to an imperfect model.There is really no such thing as a valid excuse, Mr. Tullman (above) says, but even when "each explanation makes sense by itself, the cumulative process tells you" there's a deeper problem. He calls this the "another other" problem.
Third, some startups are beguiled by products that delight a small audience—that includes the company's founders—but fail to connect with a broader market.

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