So sorry but I can’t quite agree
This is a really helpful post for those who already decided to create a small business and have no real interest or don’t see a way to go big.
But “if you’re looking to start a business, there are really only two concerns that you have to think about. Only two”
- A business that serves you and your family. Do you want to start a business to be your own boss, make more money and enjoy the prestige to run your own company, while you obviously serve your customers well. OR
- A business that serves others. Do you have a bold idea, a grand vision how you make the world a better place and do not care much how much money you can make yourself and how painful it may be.
In Maslow’s pyramid of needs, Case No 1 is somewhere in the middle (covering safety, belonging and esteem) and case No.2 is on its top (self actuation).
Investors focus almost exclusively on businesses that serve others and scalability is a key to do that successfully — the risk / reward model is compelling and they can make tons of money. For businesses that primarily serves you no investor is needed as you should be able to grow it organically.
Why I think the above distinction is so important:
1) Startup entrepreneurs make that fatal assumption that they need an investor to start their business.
2) Since most are more likely to start a small business, but believe they need an investor, they fake to build a gigonomic enterprise making gazillion dollars and attracting more people than we have on the planet, becoming the next uberRbnbFacebook of the business they are doing. Obviously failure is pre-programmed.
3) When instead entrepreneurs start by determining who they really are and what they want to do, they can look for the appropriate support:
In Case 1 they will be looking for local support in their community, chamber of commerce, local business associations, find small business owner who may help with tips and so forth.
In Case 2 they they will be looking for mentors, incubators, accelerators, business angels, VCs, industry experts, international connections and others to help pull of the big idea.
Jon, thank you for helping me recognize the difference between one other the other business type and inspiring me to write this comment.
