Evan Carmichael warns that startups fail because founders chase big visions without generating revenue early. The Techstars CEO predicted 2023 would be a graveyard for startups. Carmichael recommends starting with a service-based model like coaching to build cash flow before scaling to product-driven ventures.
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Techstars CEO says 2023 will be a graveyard for startups, and the problem is entrepreneurs just aren't making money. You've got a big mission, a big vision, big dreams, amazing. You wanna change the world? Let's go. I'm here for it. But you have to learn how to make money or your dream will never happen. The easiest way to get started, here's a trick, is you start a service-based business. Most people start product-based businesses that take too long to develop and take too much investment, too much capital to get off the ground, and they end up going broke in the process. Start a service-based business. But Evan, I'm trading my time for money. I don't want to do that. Yes, that's exactly what you want to do at the beginning. At the beginning of your business, you trade your time for money. You start a coaching business, you start a consulting business, you start a service-based business. You trade your time for money so that you have money in your bank account that then you can use to go build your empire. So many people are off just trying to build an empire, just trying to think about leverage, that they go bankrupt in the process. You can't change the world if you don't have any money.
