My co-founder, Prem Bhatia likes to say that the default state of a startup is failure and each startup is furiously working to avoid that state until it finds product-market-fit. He is absolutely right.
Last year was a good year for my company, Cooleaf. We grew our revenue by 477%. I preference that number by saying that it’s a lot easier to put up a big number like that when you’re starting small, but regardless, it’s strong growth. We implemented a new iteration of our product last March and were able to close several large enterprise deals. Our largest contract being $50K.
This all sounds great and it is. However, it still is not good enough. Despite having our best year ever with huge potential in the future, we are still working towards achieving product-market-fit and being financially secure. We have steady MRR (Monthly Recurring Revenue) and are growing but we also have grown our expenses, primarily investing in our technology.
Based on the feedback we get from customers and our own market discovery work, we believe there is a path to scale the business faster through our product. We are seeing more frequent and stronger signs of product-market-fit and therefore, we plan to continue investing in our technology to get us there.
One big challenge we face is that B2B enterprise sales cycles are long. Much longer than we expected. We’ve found that company leaders can absolutely love our product but since there is no line-item in their budget, we have to wait until the next budget cycle to get approved which may take a full year. This puts a strain on cash flow for a small company like us. Bottom line is that we have to find ways to shorten the sales cycle by providing more value through our product resulting in it being considered a ‘must-have’ for the the customer.
It is a strange feeling that can only be summed up as being part of the life of a startup when you have the sheer excitement of that feeling in your gut that you are on to something really big, all the while feeling a burning on the back of your neck from the pressure knowing that the clock is ticking and you have no choice but to fight like hell every day to survive.
Here is to kicking some ass and breaking glass in 2015!
Startup Lessons Learned 
John,
Thanks for sharing with me your latest entry. I’ll comment the next time we get on the phone together (next Sunday, 9:00 PM?).
Here is my latest, “Larry’s Corner” blog for my church:
What The Lord Wants From Us During These Conflict Ridden Times…
Jan 9 (6 days ago)
*Peacemakers who sow in peace reap a harvest of righteousness.* *James 3:18 New International Version (NIV)*
For Christmas, a friend of mine gave me a travel bag with sundry expensive toiletries. Nothing seemed unusual about them-until I later noticed that they each was labeled, “Peace.” So, after 67 years on this planet I have finally discovered how “Peace” cleans my body and smells! Could the marketing genius of this toiletry manufacturer know something that I was soon to be thinking: my conscientious use of “Peace” toiletries might be one way that I may contribute towards genuine peace?
Oh, how many of us ache for peace in our troubled world! Peace is possible. It may start with me as I courageously lead by example in my loving thoughts, my empathetic behavior towards other people, and constructive services to my community. It’s a win-win situation for the recipient as well as the doer. Righteousness is achievable for all touched with peace according to the Apostle James.
What can you and I do to promote peace, today? Let us start by examining our thoughts towards one another. Are we suspicious just as others are suspicious towards people of a different faith? Negative feelings can be quite irrational and contagious. As Jesus said in the Sermon on the Mount: *But I tell you, love your enemies and pray for those who persecute you…* *Matthew 5:44 New International Version (NIV)*
Larry Duisberg