The best business is not in setting up your own store. But in renting the space and providing others with the space in which transactions are carried out. By limiting The five itself to providing the platform that brings buyers and sellers into contact. The company that follows this model drastically reduces its capital needs.
A radical example could be the five
The musician who records and then sells one of his concerts on CD. This strategy of closing a first contact with a customer and then selling a modified version of the product to a executive email list larger audience can work in small companies. Such as Microsoft when Bill Gates closed a contract with IBM to supply it with an operating system. All of these business models, and others with a similar orientation. In the sense of using one’s own resources. Its advantages are obvious:
Since it is expected to obtain
The financing it needs from them. The business focuses on its number one priority: customers . It allows the entrepreneur to spend most of his time perfecting his business model and product. Instead of seeking financing. By forcing itself to operate based on small amounts contributed by clients. It provides freedom of action and independence. As there is no better source of freedom. Even better than money in the bank, than a positive cash flow. If you finally choose to go to venture capital. The valuation of the company will be much better and the founders will have a better negotiating position.
Of course, customer-funded business models are not always possible . Businesses that by their nature consume high volumes of capital, requiring, for example, factories or any IT Email List other infrastructure, will almost always depend on traditional financing. But the important thing is to understand that if a business model is good, the initial clientele can be the key to its growth .
