The Funding: Try to get Angels involved. Going for Angel investment right away is a prudent course of action for small teams with great ideas. Get someone in with a network, who can help you open doors. But remember that, ultimately, you’ll be doing the work yourself. There aren’t many people who can help with the actual work. Remember too, that you have to live with them for the life of the company. Be careful who you allow to invest. You should do as much due diligence on your investors as they do on you.
The Idea: Get down and do the work. There will be a lot of skeptics, but if you believe in it, go for it.
The Economics: Be sensible about economics. If you write a forecast, you have to accept that it will not work out. I’ve never seen a single one that worked out. Be realistic about your burn rate. Concentrate on keeping your costs low and working out which information to pay attention to.
The Feedback: Listen to smart people. With social networking tools, you can get a lot of advice from great people. I learn more from such tools than any survey or discussion with a big company. Put your consumers in focus, and listen to what they’re actually saying, not what they tell you. Look behind the feedback into the stats and see how people are actually using the product.
– Daniel Ek, Spotify