[Mitchella]

This is a slightly ignorant claim to make. There are plenty of startup companies who have different business models than just "make a program and sell it".

Additionally, you're assuming that every startup is also a saas startup. Most aren't, meaning they might have a thousands in lets say production molds and an order of 10000 units from retailers. They'll need the investment money to help them fulfill orders and grow.

Lastly for many other startups there are costs that exceed past general development. Security is a good example of one of these large costs especially if you're dealing with money or private data in any way. These additional necessary costs could be minor but for many startups they're large and unable to be paid for by the hopeful entrepreneur.

[grenek]

I think you'd agree that any advice is completely universal. Selling preorders is a solution for most cases, but we of course can discuss the exceptions. If your selling process is different than "get money -> ship the product" than you will always encounter cashflow problems and maybe it isn't so wise to start such a project as a startup.

[scott_meade]

Because 123ship.it is a software blog, I think the post is intended in context of software development, not widget stamping.