Tuesday, August 26, 2008

Business innovation Vs funding

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.

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