I was moderately surprised when professor Warren McFarlan said this at our first accounting class at Harvard Business School: “If there is one thing that I would like you to remember from my class, it’s that cash flow is king.” Then, he showed us a video clip of Cuba Gooding dancing and saying “show me the money” in the movie Jerry McGuire.
But the modern-day startups don’t seem to care too much about it.
Sometime back, I met up with a founder of an IoT startup who asked for feedback on his go-to market.
The founder said something like these (numbers modified for privacy):
“We need to make it easy for customers to commit, so the pricing can’t be too high.
We need to commit 1,000 for our first order.”