What Happens After funding and Product Development?


I've been running my own online business and do very well from it however

I'm looking to go to take it to the next level as i found there is a ceiling in my current business of mid 6 figures. (Ideally in the realms of $5-10million+).

I continuously read about many "startups" making crazy amounts of money (100's of millions) and am just trying to understand how it all works myself, i would also like to have a "startup" of my own.

I do not need investment as I have my own funds and it would most likely be some kind of web/tech startup... i already have knowledge and skills in these fields.

I am just wondering where to go after you have developed the product, is it to simply to promote and market it yourself?

Where do the big $$$ come in? Is it basically when you go public?

Sorry if i sound stupid, just the entire subject of startups seems so overwhelming, especially when it comes to raising finances, investors etc...

If anyone could help me out, I would be so grateful

Thanks a million!

Marketing Startup Costs Product Release

asked Feb 21 '12 at 17:43
11 points
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1 Answer


Only a very small percentage of web/tech related companies actually go public, also known as reaching IPO (Initial Public Offering). Some who do, often don't perform to the levels it was originally predicted (see Groupon [edit: and now also Facebook]).

For the other startups who don't fail in the first five years (around 50% or so), the big $$$ can come in two ways:

1) Making big money with their product or service.

2) Being acquired.

To reach either of those levels of success, yes, marketing has a huge play. For some, their product is viral and customers essentially do the marketing for them. This is not very common so for the average startup, you have to be actively marketing your product constantly.

If nobody knows about you, they can't buy your product. If nobody buys your product, a company will never be interested in acquiring you.

answered Feb 22 '12 at 03:44
178 points

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