3 ms·
I think it really depends on the product, selling goods and online services is easy but having a brick and mortar component is what makes the costs skyrocket. P
by badrabbit 7y ago
I think it really depends on the product, selling goods and online services is easy but having a brick and mortar component is what makes the costs skyrocket. Perhaps I should try things with a low barrier to entry at first.
- muzani 7y agoSorry, that was not very well phrased. What I mean to say is that startups are about minimizing risk. A business model canvas helps you highlight what hypotheses you have. You go through them and minimize each one. Often the highest risk hypotheses are regarding costs and income model. Seed funding is originally about just about getting enough funding to prove all the hypotheses. You can validate food by finding a delivery partner. Fashion can be placed in clothing stores. Film can be started with YouTube. Just a minimum viable product for each. I'm not sure exactly what sector you're doing, but there's another model you can consider for brick and mortar. The product developer designs something, stockists (logistics/management/mentoring) buy in bulk for about 30% of retail price, agents (sales) buy from stockists for about 70% of the retail price. You end up with a 8x markup but it's a really low capital model because the people at the end of the chain give you the money. VCs only take super high returns; they are experts at reducing risk and tend to not value something moderate risk. There are VCs for non-tech companies as well; you want a VC who's a pro at reducing risk in your sector.