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What Makes Startups Work

Resolved
parag·1 day ago·🌍 Public

Question / Claim

Startups succeed not by hitting revenue formulas, but by deeply solving painful problems for a small, specific group.

Key Assumptions

  • Revenue milestones are outcomes, not causes, of product-market fit.(high confidence)
  • Small, focused user groups provide better learning than broad markets early on.(high confidence)
  • Retention and word-of-mouth are stronger indicators of long-term success than acquisition numbers.(medium confidence)

Evidence & Observations

  • Common YC advice emphasizes talking to users, charging early, and doing things that don’t scale before focusing on growth metrics.(citation)
  • Observed pattern that startups with early passionate users survive longer than those with high but shallow traction.(personal)

Open Uncertainties

  • How small is too small when choosing an initial niche?
  • When is the right time to shift focus from learning to scaling?

Current Position

I believe the real driver of startup success is obsession with user pain, retention, and fast learning—not surface-level metrics like MRR alone.

This thinking has reached a conclusion.

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