Page 47 - The Bootstrapper Bible

ChangeThis And what about our hero? He gave away half the company to someone who didnʼt do much work and who was easily replaceable. Left with 98 percent of the work but just 50 percent of the company, heʼs never going to be able to raise enough money to launch this business. Lucky for him he doesnʼt have the cash in his retirement account—he might have been foolish enough to take the money out. Understanding the value chain of your business is a great first step in getting to the core of how you’re going to succeed. Successful bootstrappers know this: Your business is about the process. Itʼs not about the product. If you structure a business model that doesnʼt reward you as you proceed, it doesnʼt matter how much you love the product. Pretty soon there wonʼt be any product to love. The bootstrapper is focused on finding a market that will sustain the process. A platform that responds to the work you do. With a business model that works, the deal is simple. You invest time, effort, and money. In return, your market responds with sales, cash flow, and profits. But, you might be thinking, donʼt some entrepreneurs turn big ideas into big companies? What about Steve Jobs or Bill Gates or Phil Knight or Ted Turner? What about them? They picked giant business models and got lucky. Someone had to. The market was ready, and they won. But their success is the exception that proves the rule. For every Bill Gates there is a David Seuss, a Phillipe Kahn, and 100 other super-talented, hard- working visionaries weʼve never heard of. | iss. 6.01 | i | U | X | + | h 47/103 f