To build a startup requires 2 things
Perseverance to stick through it til the end for the big payoff
One of the most important skills in entrepreneurship is perseverance. Starting a business and growing it to profitability takes time and you need to be able to stick with it even when things get rough. The road to success is often filled with many pitfalls and founders are unable to see the light at the end of the tunnel, especially when they’ve hit their first roadblock. Perseverance leads you through those times and gives you hope that you’ll reach your goals.
The need to pivot constantly as things change
The ability to pivot is one of the most important attributes a startup should have.
The startup environment can be highly uncertain, and many times it requires pivots to adapt to the changing market or environment. Most of the time, startups need to change their strategy and direction based on feedback from customers and market research, which will lead to a pivot.
A pivot is a change in market or customer type, business model, technology or product strategy. It is important for startups to be able to make changes quickly as early adopters may not fully understand the value that the product provides.
The traditional way startups are launched
Co-founder
- Finding a co-founder is like dating: it can take months or even years, and finding the right person is difficult. You might find someone who has the right skill set, but they’re not a fit for your startup. Or maybe they don’t possess the right traits.
- Startup founders are notoriously picky about who they'll work with. They often have visions of "changing the world" and want to surround themselves with like-minded people who can see the big picture. But as anyone who's ever been in a relationship knows, it's not always easy finding someone who shares your vision.
Hire an agency
- Agency folks are used to a certain level of certainty. They know what they have to do, and they have a process in place to deliver that. They are very experience and good at what they do. They most likely will not make rookie mistakes. However, they do not fit the mold needed in startups, which is uncertainty and also the fact that most startups don’t have a lot of money upfront. This build and go style does not fit startups where they need their partners to stick with them and adjust with them throughout the period, to ride out the roller coaster with them.
- This uncertainty makes agencies uncomfortable because they rely on upfront profits. They get paid first and then deliver. They need that success upfront. This is a complete mismatch with startups who are unsure if they will exist in a few months time let alone what their product should be. The agency needs an upfront guarantee of success which is extremely hard for any startup to provide let alone make happen in reality.
The venture building mode
- The main reason why Venture Builders are the best bet for startup founders to work with is that they are a blend between co-founder and agencies.
- Venture Builders take in revenue in the beginning just like an agency, however they do not take the profits. Instead they take almost zero profits, making it more affordable and cheaper for startups to pay in return. They ask for equity and to be able to share the success of the startup when it goes fundraising.
- This hybrid mode allows the venture builder to work on many startups, build an ecosystem and gain valuable experience in building ventures. Venture builders have a team of entrepreneurs which have built several businesses before, and makes them highly efficient in their work. They gain the expertise just like an agency, but act like a co-founder.
The ecosystem that the venture builder brings
A venture builder is a company that, unlike an incubator or accelerator, actually builds companies — and it does so over and over again. Some people have also called this a “startup studio.”
A venture builder’s business model is similar to that of a real estate developer, but instead of building houses, they build companies. The venture builder keeps ownership of the companies it creates and shares revenue with the founders.
There are three key differences between a venture builder and an incubator or accelerator:
1. A venture builder works on multiple projects at once, while incubators and accelerators take on one batch at a time (and often no more than two batches per year).
2. A venture builder actually creates new companies from scratch, rather than turning existing startups into something marketable.
3. Because they have been doing it over and over, the venture builder is able to not just provide very good executional work, but it’s also able to give network access to investors, businesses and other founders — this is value to every startup to be able to leap frog in front of their competition and get a massive head start
Startups will avoid the cost of all the rookie mistakes that comes with building a venture
Venture builders can help startups avoid the cost of all the rookie mistakes that come with building a venture. You can learn from their experience and get the same rsold several companies as well as raised funds for newesults they have while saving yourself some time and money.
Venture builders are experienced individuals and founders who have built and sold several companies as well as raised funds for new ventures. They can guide you through the entire entrepreneurial journey, including building your product, starting your business and funding your venture.
Shared resources with a highly dynamic team
Venture builders can help entrepreneurs get access to top talent, even though they have no funds to pay them. Since these resources are shared across multiple startups, there’s the economies of scale. Also these are individuals who are highly skilled at their craft and can provide 10x more productivity than hiring juniors. Startups would never be able to afford the salaries of these seniors, however through a venture builder they could
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