The success of a new venture is almost entirely dependent on the commitment of the entrepreneurial team.
Let me present you the classic story of the pig and the chicken:
What can we learn from this?
In a typical case the whole team is made of chickens. That is, people who contribute to the common goal but in the end have nothing to lose.
But a team made of chickens has rarely achieved anything remarkable. People appreciate commitment and especially when the team is looking for venture funding it’s critical that they are committed.
Why on earth would the pigs commit?
If you’re the pig, you should ask yourself two questions:
- Is the ham-n-eggs business really what you want to do?
- If yes, could you get more pigs to share the responsibility?
After that it’s easier to calculate your risk and expect a reward accordingly.
I’ve experienced both positive and negative feedback regarding my project. Positive feedback is always nice for building your confidence but negative feedback is the only way to learn. And I’m learning to love negative feedback. One recurring theme in the feedback that I get is that I’m bullshitting people. There are indeed ways I could be doing just that.
You make people work for you for free
I’ve tried to discuss the concept of money with everyone who has expressed interest for my project. Most people agree that money is not really that important. There is nothing wrong in wanting to have money and I will do my best in giving all the stakeholders the money that they deserve. I’ve set my fair share on $1,000,000 but a person that contributes twice as much as I’ve done should obviously receive $2,000,000.
There is a huge risk for everyone involved
Risk is an interesting concept. Risk is usually connected to money. A risk with an estimated reward becomes a calculated risk. In financial terms my personal risk in being an entrepreneur is around 50,000 € per year. That is the difference of my current income and the income that I could be making just working for the “industry”.
An entrepreneurial team is the ideal environment for setting the personal risk level. You can leverage the risk as high as you want or you could be doing it just for the salary.
This is some multi-level marketing trick
Most people have witnessed one or more of their friends being tricked into these affiliate marketing tricks. In Finland, the story of WinCapita is still in people’s minds.
We will be building a company with an honest and a tangible product. When we get that far, we will need a limited company. The only similarity to a pyramid scheme is that the early people tend to get more with the same money than the ones that get along later. That doesn’t mean getting along later couldn’t be handsomely rewarded.
You’re just building a large audience and then start selling some crap in your blog
Every company is selling something. I’m not even sure if we absolutely need to sell something during this project. Internet is an environment where a service can be valuable even though it wasn’t selling anything. Obviously there still has to be a potential to sell something in future.
I have already been contacted with an offer to invest money in what I do. But this blog won’t become a company. This blog does not want anyone’s money nor will it be selling anything. So wait until you know exactly what you’re getting before paying your money. Otherwise someone just might be bullshitting you.