How To Get Started — by Dan Lynn
By Dan Lynn
The big question I had when starting the business was where to get started. How do you prioritize and focus? Do you build the infrastructure so that you can do the work? Do you hire people who can do the work? Do you focus on raising money so you can do the things above? Or, do you focus on getting customers? If you could do just one thing, what would it be?
Well, I didn't really know. Obviously, it may be different depending on the type of company you are starting (technology versus service), whether you already have funding, etc, etc. However, we were starting from scratch. So, we didn't have anything. And our business was a Web Services business. So, where to start?
I interviewed over 20 senior business managers. Many with significant entrepreneurial experience. The bad news is that there were a lot of different answers. The good news is that those who had built their own businesses all agreed - focus on getting your first customer. Even if you can't actually execute on the work you should try to get a prospective customer to agree under contract that, once you are prepared to deliver, they will use your company.
The bottom line is that the hardest thing to do is get customers - period. Customers drive everything else. With customers, you will more easily get funding and be able to build the operations. Customers will drive more customers. Marketing 101 - "Get the biggest and best and brag." Great customers will also drive great prospective employees through the door.
At the end of the day, there are 3 things that can happen to your business. First, you can get revenue and fail at executing. If you do that, you will be out of business. Second, you can fail on the revenue side but be great at executing. If you do that, you will be out of business. Lastly, you can drive revenue in the door and execute with excellence. If you do that, you will survive and grow. It all starts with driving revenue in the door. So, get out of the conference room and go get your first customer.
Questions this Key Learning answers
What should I focus on first when starting a business?
Dan Lynn’s answer is to focus on getting the first customer. When starting from scratch, he found that experienced entrepreneurs consistently prioritized customer commitments over fundraising, hiring, or infrastructure. Our analysis explains why: a contract, deposit, or serious pilot provides evidence of demand and helps determine what actually needs to be built.
Should I find customers before I am ready to deliver?
The author says yes: even without the ability to execute immediately, founders can seek a contract from a prospective customer who agrees to use the company once it is ready. That commitment is stronger than general interest. It can clarify the required operations, support fundraising, and attract prospective employees.
Why is getting the first customer more important than building infrastructure?
The author argues that customers drive everything else: revenue, funding, operations, future customers, and prospective employees. Our analysis adds that infrastructure built before customer commitment rests largely on untested assumptions. The first sale reveals what must be delivered, which roles matter, and what the company needs to build next.