What To Consider Before Starting A Business
This article is written by Mohammad Eslim, a Contributor Author at Startup Istanbul.
Morten Lund is a serial entrepreneur based in Copenhagen, Denmark. He has founded or co-invested in more than 100 high-tech startups in the last 15 years. These include Skype, ZYB, Polar Rose (facial recognition), Bullguard, Tradeshift, AirHelp and itembase.
As an entrepreneur, investors might find your purpose-driven, compassion self-attractive and might just provide you with the financial support you want and need to start your own company. But it is not enough.
You have to consider a lot of things before you advance with your startup. It is fine if you won’t depend or use technology starting your business, because you can take out a simple idea and turn it into a full-functional, successful company with zero code in all the phases they have gone through.
Of course some of you guys will have to think deeply, do some deep tech and do some difficult stuff that take years but never be shy to put a hack together that makes the best business sense because ideas worth nothing without executing them as fast as possible, it’s all about executing them right now.
You also need to understand what exponential actually means in our life we are living and in all aspects: technology, education, data, finance and so much more our brains have to understand and worry about.
For companies, exponential is very interesting. For example, the yearly growth rate of a five percent of weekly growth equals 12 times growth whereas ten percent gives us a 142 times yearly growth rate. The brain can barely take it, so you must grow and understand KPIs, might also have everything that might relate to your business numbered and calculated.
Phones’ operating systems, for instance, are perfect for us to take a look on what exponential works. You have IOS in iPhones, mostly for you and your rich friends, in the second place after the significant growth of Android; now you might want to know that Android is for masses, which Bill Gates failed to hack and with that exponential growth of Android an insignificant number of people own a phone operating on windows system.
Another big trend is education, for now everything can be learnt through internet especially with engines and servers so big as Google and YouTube. And that is something you have to put into your mindset when you start your companies.
Another fact you have to play with if you want to be in the business scene is the fact that almost everything right now is digital; books, music, maps, etc. And even now there is this optimization movement that is based on artificial intelligence (AI), Google has made this self-driven car and the camera used on top of it costs a fortune of 180 grand dollars. Thay were betting on exponential or Moore’s law that states that the computer power is going endlessly up and the prices are going down. Right this moment you have a computer in your pocket that twenty years ago costed about fifty million dollars.
Now there are a lot of demonstrations against Artificial Intelligence because it going to take a lot of jobs. We are talking about this because you have to think much larger if you want to do something significant.
Just do your business and understand the technology, and despite the fact that it feels sometimes to be advanced in technology, it is turning from science fiction into a reality. No doubts that the business in the near future will be very different than the one we are in right now.