What does the New Year bring for startups?
Here is an interesting post by Vishal Gondal about what resolutions startups should make in 2009. Some of the ones are pretty common but #3 is really true and should be followed by most entrepreneurs -
3. Focus on Non-Advertising revenues most start-ups specially on the internet side have only one major line item in revenue which is Advertising. The unfortunate reality is the first thing to get cut in a downturn is the advertising budget and the biggest impact this has is on the online side. Besides the CPM rates are falling sharply. Business models solely dependent on ad-revenues are going to have a tough time sustaining.
I come across so many people wanting to start B-2-C businesses with advertising as their main revenue source. Think of other revenue sources besides advertising e.g. subscriptions etc. I am a fan of monthly recurring subscriptions - it predictable and you can gauge your businesses health from month to month directly through your customers.
My hope is that 2009 will be the year to think outside the ‘ad’ box - more solid online businesses.
PS - This is another article I came across this morning on Forbes - Banner Year? Not Quite.
