If you are currently an entreprenuer or you are thinking of starting your own business, you might have come across this problem. You are looking to start a new company and you think it has all the potential in the world! You start to tell yourself: “This is the NEXT BIGGEST THING! Everyone is going to BUY THIS! I’M GOING TO BE THE NEXT BILLIONAIRE!”
Trust us, we have all been there. BUT before you get started, answer these questions.
THE 5 FILTERS
1) How big can the “new business” possibly get?
2) How long will it take to actually be profitable, or get it to the scale you want?
3) How much will it cost to start?
4) What are the margins at the beginning and also at scale, how profitable is it really going to be?
5) What is the “END STATE” of the company, do you want to own it forever, or eventually exit? What does that look like?
In this podcast, Ryan discusses with Kota about the 5 questions/filters he asks himself before starting any new company. We all think we have great ideas, but are they really? In our heads it might seem like the next BIG thing, but when you look at it from these 5 angles, it may look different.
They also go over:
- Is it a good idea to start a business with a saturated market?
- Understanding more about profit margins in your business
- The importance of going the extra mile for your clients - Bootstrapping (using your own money) vs Investors