Why Use a GPS When a Compass Will Do?

Blue metal compass isolated on white backgroundI guess the correlary to this could be “don’t use a compass when the precision of a GPS is needed”.  In fact, the main point is to use the best tool for the job at the time.  If you need to move fast and just want to make sure you’re directionally correct, then a compass is perfect.  With plus/minus a few degrees of precision, you can quickly set off in the right general direction.  In fact, I wrote a blog article on this exact topic titled “An Unfair Advantage All Startups Have Against Big Companies“.  Same for things like estimating your TAM/SAM market size (does it matter if it’s $3.2B versus $3.3B?), estimating salaries for new hires over the coming year and the like.

The analogy of using a compass is ideal for times when speed and flexibility are more important than precision.  In other words, make sure to use a GPS instead for things like revenue recognition and your investor capitalization table – where precision is mandatory.

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The information in this article is just a very small piece of what I cover in my Founders Academy Video Library, which includes more than 35 topic-specific modules and 6 themed compilations.

I’m talking about more than 13 hours of educational and advisory content to help you grow a great company.  Click Here to Learn More

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Author: Gordon Daugherty

Over the past 15 years Gordon has seen nearly 1,000 startup pitches, advised more than 200 entrepreneurs and been involved with raising over $45M in growth and venture capital. Throughout his 28 year career in high tech, serving twice as President and three times as CMO, Gordon has both an IPO and a $200M acquisition exit under his belt. Now his emphasis is purely focused on helping startups and early stage tech companies. Through his Shockwave Innovations advisory practice and as Managing Director for Austin’s Capital Factory startup accelerator, Gordon is an active angel investor, VC and startup advisor.

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