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You are right, you can't build a company based only on tech, it needs to be about business.
Also, one of the most important things you said is this: "Don’t hold onto a vision for the future that’s not realistic given today’s reality."
In thinking about that statement the first thing that comes to mind is this: preparation is key.
Destination - Vision
Waypoints - Milestones
Dead Reckoning / Alter Heading - Objectives
DR/AH can be very difficult in the formless void of a startup. But knowing where we're going helps inform the many "alter headings" until we reach the next waypoint.
I really like the way Dick Costolo and Fred Wilson sythesize this exploration with business realities:
http://www.unionsquareventures.com/2007/11/why_...