When it comes to doing business, particularly online, the common thought is that you want to go with the ‘bigger’ company with more financial backing as they are less likely to go out of business. You want this because you don’t want to have to go through the process of starting over with a new company; importing all of your staff and setting up a new restaurant schedule in different software, in our case. You want to go with the company that has tons of investors, a lot of employees, a big marketing department and programmers all over the world, right? Not so fast. In a recent article from Business Insider, a prominent investor called for possible changes coming.
…Bill Gurley warned that Silicon Valley's golden age could soon be over — and that some of today's biggest startups could go down with it.
Bill Gurley has invested in companies like Uber and SnapChat lending him credibility. His theory is that too many companies are being labeled as unicorns. A unicorn is a company that has a billion dollar valuation quite often without actually making any profit whatsoever. The theory is that they will build such a large audience and network that the value of their network will make them worth these incredible sums of money once they decide to ‘monetize’ their product. AKA, start charging someone for something. In the case of FaceBook this was introducing advertising, in the case of Yelp it was charging restaurants (and other businesses). These are two examples of companies that were able to monetize fairly well (although Yelp has some new troubles)
However, every day companies such as these fail even though they have a good product and millions have been invested. Why do these companies fail, you ask? Here is why; at some point the investors become uninterested in the ‘potential outcome’ of the companies as they aren’t headed toward that multi million or billion dollar value that they had hoped for. These companies now have massive payrolls or marketing budgets that the companies can’t actually cover with their income. So, essentially they are done the moment the investors stop pumping in money. So, how does ShiftZen online scheduling software stand you ask? We’ve never taken a dollar of investment and we owe no money to banks or lenders. Sure, we’ve grown slower, but we actually take in enough money each month to pay the bills we have. For the most part we spend money on making the product better and faster, but we do this through grass root methods. We simply call or send surveys to our customers and ask them what they like, don’t like and what they wish they could have. Then we build it, test it and release it. Simple. Just like your restaurant most likely. You create a dish, see if people like it, then if so…you promote it from weekly special to a menu item. You see with our scheduling software we believe that our customers know the right direction, not a bunch of investors that don’t have a clue how our customers operate. Thanks for taking the time to read and please feel free to leave us comments!