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Money gives you more throws of the dice, and often with 'better' dice.

by hnhg 5y ago

Frost1x 5y ago
Interesting to see this down-voted. This is absolutely correct. Many like to pretend money and capital don't give a competitive advantage when that's entirely far from the truth. I think few people truly believe money guarantees success and that's rarely claimed from my experience. There are plenty of other factors that need to be met to start a successful business, but if you have money, those other factors can be focused on more intensely and you'll be less hamstringed on factors like timing and time to market, innovation/added value, network effects/marketing, and so on. You're working at a disadvantage in most other aspects needed for a successful business if you don't have a certain baseline of capital to work from. Often times more capital infusion beyond that baseline can help. There are certain problems addressed by startups that throwing money at no longer helps and you can reach diminishing returns. That's a nice problem to have. To your point, money can buy you a Monte Carlo (or MCMC for 'better') approach to market exploration for your businesses products/services. You can try, fail, and adapt. For many without piles of money, starting a business can afford only one failure (if they're that lucky) in their lifetime. No retries with refinements.
- ThalesX 5y ago
  I grew up very good friends with two brothers that had wealthy parents. We built our first company together at 18 and failed. Since then, for about 5 years I did full time corporate work while they failed maybe two dozen businesses. The nice part is that out of those failures, two companies took roots and basically now they’re a lot wealthier than their parents and they long since paid of all the money they lost during those years.
unishark 5y ago
Funding yourself is like representing yourself in court, you get a naive investor who doesn't know anything more than you do and doesn't reign in your dumb ideas. While the rest of us need to get funding from experienced investors who vet our plan first. In a system where there are investors looking for people to invest in, this approach is bound to succeed more.

Money gives you more throws of the dice, and often with 'better' dice.

by hnhg 5y ago

Money gives you more throws of the dice, and often with 'better' dice.

Interesting to see this down-voted. This is absolutely correct. Many like to pretend money and capital don't give a competitive advantage when that's entirely far from the truth. I think few people truly believe money guarantees success and that's rarely claimed from my experience. There are plenty of other factors that need to be met to start a successful business, but if you have money, those other factors can be focused on more intensely and you'll be less hamstringed on factors like timing and time to market, innovation/added value, network effects/marketing, and so on. You're working at a disadvantage in most other aspects needed for a successful business if you don't have a certain baseline of capital to work from. Often times more capital infusion beyond that baseline can help. There are certain problems addressed by startups that throwing money at no longer helps and you can reach diminishing returns. That's a nice problem to have. To your point, money can buy you a Monte Carlo (or MCMC for 'better') approach to market exploration for your businesses products/services. You can try, fail, and adapt. For many without piles of money, starting a business can afford only one failure (if they're that lucky) in their lifetime. No retries with refinements.

ThalesX 5y ago
I grew up very good friends with two brothers that had wealthy parents. We built our first company together at 18 and failed. Since then, for about 5 years I did full time corporate work while they failed maybe two dozen businesses. The nice part is that out of those failures, two companies took roots and basically now they’re a lot wealthier than their parents and they long since paid of all the money they lost during those years.

unishark 5y ago

Funding yourself is like representing yourself in court, you get a naive investor who doesn't know anything more than you do and doesn't reign in your dumb ideas. While the rest of us need to get funding from experienced investors who vet our plan first. In a system where there are investors looking for people to invest in, this approach is bound to succeed more.