When founding a startup, it's almost considered gospel to go forth and amass abundant capital so your business can burgeon and multiply. It even sounds biblical. And there are undoubtedly some businesses for which this approach makes sense.
On the other hand, unless the founder/CEO can clone themselves, time and effort spent raising capital takes away from time and effort dedicated to creating revenue streams. And since most of us don't understand how cloning works, we tend to focus mainly, or even entirely, on accruing start-up capital.
I think that's a problem. At least I could foresee it becoming one when I founded SynFiny Advisors. Instead, I challenged myself and my partners to focus immediately on finding clients and growing revenue. That approach turned out to be one of the most significant factors in our rapid success.
This revenue-centric focus gives the founder more precise control over their company's destiny. What's more, the valuations for a fast-growth, revenue-generating company are significantly higher than a company with untested concepts.
Rich Dad, Poor Dad author Robert Kiyosaki famously said: "Most people fail to realize that in life, it's not how much money you make. It's how much money you keep." This concept underlies our revenue-centric approach at SynFiny. If you spend all your time and effort raising capital instead of revenue, the focus is on how much money you need to survive instead of how much you keep and need to thrive.
Here's an example. We raised less than $100,000 to start SynFiny. Over the last seven years, we generated tens of millions of dollars in revenue helping clients all over the world, and we were able to keep all of the equity and profits in our company.
Warren Buffett frequently talks about looking for a 100-bagger when evaluating stocks, meaning they return $100 for every $1 invested. So you can imagine how thrilled we were at SynFiny to create a 400-bagger with a 6-year CAGR of 90+%. We made it happen by focusing on revenue from the get-go.