“This method of establishing a sales force is called the sales learning curve (SLC). It’s a concept adapted from the manufacturing learning curve (MLC), which is widely accepted in the manufacturing sector. The MLC states that the cost to produce the early units of a new product normally is high, but over time, as the production team learns how to optimize manufacturing and wring-out costs, volume increases and per-unit product costs decline sharply. When we apply the MLC to sales, we come to the following conclusion: The time it takes to achieve cash flow breakeven is reasonably independent of sales force staffing.”

“Since I began writing this column, I have received e-mail every day from entrepreneurs who are starting a new software company. All those comments and questions have motivated me to write an article about the process of creating a new, small ISV. Note that this article is about ‘bootstrapped’ companies, not ‘funded’ companies. Starting a company with money from investors is a completely different topic that I am not addressing here.”

“ve long held that talent is one of the more important aspects — indeed, assets — of any organization. It might even be the most important quality of a company. With a team of talented people — smartly skilled colleagues — you can accomplish more than what might be supported by available resources otherwise. Not so, says Malcolm Gladwell, author of The Tipping Point and Blink.”