But to start and grow are two different things. Even if you can start with $ 10,000, how much would you need to run an IPO-worthy business? Here is the difference in the striking number. Even if these numbers were adjusted, they should be logarithmic. So, why the difference?
Possible explanations are:
- Some businesses choose to start on a smaller scale, and it does not matter in the end
- Some founders have a culture of over-raising
- Some types of businesses are more attractive to investors
So, how much money do you think you need?
Leaving aside these personality and cultural issues, does Google’s construction really cost more than Facebook? If your costs are almost equal (which I think is the case), could the link between the amount of your money and the value it generates be very vague?
This applies in writing. Books are written by writers in prison or hungry are as good as those of well-nourished writers. Nelson Mandela, Oscar Wilde, O. Henry and Martin Luther King have shown that calamity produced some of the best writings. But could it apply to startups? Intuitively, this seems to be the opposite: more money makes more money.
I think the answer is to cover your basic needs. The basic needs of a startup are people. If you have enough money to attract the right people, a job for them and computers to work with (they probably have yours), you have everything you need for what startups need to do: Create value.
However, there is still a way to spend more money on a startup. Marketing would be the best. You can rent a luxury office and buy designer furniture. All of this helps boost morale, but there is only one step left to create real value. And elegant chairs cost you a part of the business.
Written by A.G.Sonalie Silva