At what stage do you prove your idea? Product? Business model?

Answered by: Tien Tzuo, CEO, Zuora

Category: Product Development

How do you put measurement points along the journey? We do 1s and 3s. $1M, $3M, $10M. For your first million in revenues, focus on improving the idea. First $3M focus on proving the product. At $30M, prove the business model. At $100M prove the vision of the company and set milestones along the way. Don’t ignore the business model but you don’t have to perfect it when you’re getting to your first $1M. As you get to $10M, now is the time to perfect the business model and now is the time to determine which of your customers is most profitable than others. You need to take that knowledge and think about how you build that into the next leg of your business.