10 lessons from a failed startup

I love it when entrepreneurs discuss what went well and what didn’t with their startup. 10 lessons from a failed startup is a public service to everyone who is thinking of going out there on their own, so kudos to the guys from PlayCafe for being open, transparent and honest. I disagree with those people who think there is nothing to learn from failure, and anyone telling you about mistakes you can avoid is helping you out.

1. Find quick money first.
2. Content businesses suck (or: do it for love and expect to lose money).
3. Know when to value speed vs. stability.
4. Set a dollar value on your time.
5. Marketing requires constant expertise.
6. Control and calculate your user acquisition costs.
7. Form partner relationships early, even if informal.
8. Plan costs conservatively and err on the side of raising too much.
9. The key to negotiating is having options.
10. Knowing isn’t enough.

Along with this, check out the excellent post from Guy Kawasaki’s blog on the first year financial estimates for Redfin (dead link)