Starting A Company
This is Mo’money at Napkin Finance, talking today about starting a company.
Now listen, when you start a company, it’s got to be based on you solving a frustration that could be done profitably. So the best example that, let’s just take it, let’s just break it down to bottled water.
Somebody’s thirsty, the frustration is they need some water, you’re selling bottled water at the store, you bottle that water for fifty cents, you sell it to the retail or convenience store for a dollar, they sell it for two dollars, you make fifty cents, they make a dollar, that’s Dasani you build that up to the point where you sell it to Coca-Cola.
A lot of people have great ideas. A great idea does not constitute a great company, there are a lot of these mobile apps out there that say they’re gonna change the world but there’s no revenue model behind it, so if you want to be in the philanthropy industry, if you want to create a non-profit to help people, that’s a whole different entity in starting a company. So when you start a company, I want you to think about well that’s a great idea, that’s a great concept but I want you to realize what the frustration that you’re solving.
Problems of Companies Have
How you going to get to that customer base, do they need what you want and what you’re gonna create and then we’re going to talk a little bit later about how you going to get that funded, either money out of your own pocket; you’re going to borrow money, going back to our debt riff or you’re going to go raise money from angel investors or private equity firms or venture capital firms that are going to buy a piece of equity in your business. So you’re gonna own a piece of your business, you’re gonna borrow against the business or you going to put your own money and you’re going to take the risk of starting that company which is an idea that solves a frustration that people need and they are willing to pay for. Basic economic beliefs hold true even in the mobile world.