The #1 reason entrepreneurial businesses fold is because they simply run out of cash. The #2 reason is because the owners make one or more fatal decisions, and the most common fatal decision is to produce a product that nobody wants to buy.
Here's an alternative model, based on what Charles Handy calls Existential Enterprise, and which I have called New Collaborative Enterprise. Its first two principles turn the business school formula upside down:
1. Marketing: Don't sell or market anything -- identify and produce something for which there is a substantial unmet need.
2. Financing: Don't borrow money or sell part ownership in your business -- only spend your own cash or cash you've earned.
Aug 9, 2004
A new take on Entrepreneurship---Existential Enterprise
I picked this from Rajesh Jain's Blog and he picked it from a post by Dave Pollard. Am posting a part of the post. Rob at BusinessPundit might find it useful !
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