On August 6th we have reached our first 1,000 registered companies (and we posted it at Testuff is 1000 companies old!). A few weeks ago we had the bells ringing again, when our 2,000th company registered to the service. Simple math, which even we can do without mistakes, shows a nice average of 125 registrations a month in this period. In fact, the current average is actually higher and looks like the Internet famous growth potential for small businesses such as ourselves proves right, so far.
This is all nice indeed and a good start, but surely not enough. Heard about Facebook ? Of course you have, and so have over 200,000,000 registered Facebook users (amazing number, isn’t it?). Bottom line? Facebook has yet to earn its first profit Dollar. And don’t get us wrong, we love what they are doing, respect their success and sure they’ll find the right model soon.
As a new and small business we are constantly in search of the best approach between two options – get as many registrations, become big(ger) and only then deal with generating income somehow OR grow slowly, adding only paying customers while trying to keep the expenses as low as we can, all that in the old fashioned way of actually making money from each of those customers.
It is a common understanding by now, that the “eye balls”, “registered users” and other such Internet terms are not enough any more for a business to thrive. There has to be logic, a business model, leading to a very simple result where the expenses are less than the income and the company earns money. Our goal is not “to grow” but rather “to grow smart”, meaning that growing by itself doesn’t say much about your business.
As Warren Buffet said about his basic business rules: “Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.”
It should work better for you as well – we guess you’d rather get your testing services from a profitable company and not a losing (and fading?) one.
So our challenge now is to continue building good products, giving excellent service and growing in number of customers while maintaining these business rules and helping ourselves to stick around for many more years. No less important is that we’ll continue to enjoy what we’re doing, which helps us work better and hopefully makes our users happier.
We’ll check this when we get to 3,000 and share the results with you :-)
Note: Facebook had their first 100,000,000 registered users celebrated in a huge party. They decided not to celebrate the new milestone number, as they probably realized it is better to celebrate earnings growth…