While all start ups require some level of funding, over funding will work against innovation in business development. It is better to starve a business than over finance. Its only through financial pressures on the start up that the business management will become creative and focus on the shortest route to reach financial independence. My experience has been there is an inverse relation between easy access to money Vs innovation in technology development and business practices. Far too often a business plan is unrealistic with its expectation believing easy funding will expedite success. I have experienced and witnessed on several occasion how easy access to funds or expectation of such could ruin a start up or derail it.
On the other hand we all know of many technology and marketing break throughs that happened because there was not sufficient funds available. The quest for less expensive options and alternatives to money necessitates originality in ideas and innovation to overcome obstacles.
Tuesday, August 26, 2008
Life after you sell your business
Life after you sell your successful business has its own challenges as it often releases you from some financial insecurities and pressures. But this event adds other challeneges as one learns how to spend the new found wealth and live with the new rules. Most of us go on to sell our businesses creating wealth and unexpected headaches. The headaches come with new responsibilities and change in directions our careers take. Some of us become employees of entities that bought our businesses. Most of us will fail to flourish in this new environment and will bail out within two years. So choose your partner (buyer of your business) well and plan well ahead what you want to do next before you hand over the reins to new management. Explore your options for your life and career after selling your business and make sure you can handle what some of the consequences are, if not you are in for a shock. Knowing you will leave the parent company within two years should provide you with peace of mind and opportunity to plan ahead for your next move. Many of us like I get back out to start new businesses. But remember the same start up rules apply and having funds of your own to invest does not ensure long term success of the new venture.
Wednesday, August 20, 2008
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