At a glance, this might seem like the long-pestered type of articles by "business guru" who teaches you how to become a billionaire. However, we got a chance to briefly interview one of VHCEx major investor who's entered tons of different fields and industries before settling down in blockchain technology and crypto trading specifically. We've received some comments by our community members with regard to the short tutorial on the topic, so we decided to compile some useful advice from the person who's most in position to give out one.
To start a startup, you need to have three components:
To understand a certain subject, to be a professional there. You will not be able to build a fast-growing company - and this is precisely the essence of a startup - not understanding better than others on the market what to do. While you study, others will already create and run. The team must be so effective as to spend the least on additional employees who work for a salary.
You need to have enough capital to feed yourself at least 2 years. Usually, it takes so much to find a growth point. Your product and first customers mean nothing if it is not clear where it is necessary to focus on so that everything grows 100 times. And it's better in 1000. Let me remind you, this is a startup - a company that can quickly grow in some kind of niche, while others linger or try to grasp a new reality. Before you find a growth point, a normal investor will not even watch your papers. Why? He already has a whole box of projects with much better options.
The investor gives money to people. He understands that your current results do not guarantee future victories, and the numbers and market conditions may change every day. That is why the business plan is less concerned with how much the scale of thought and confidence that this particular team will fly to the moon. We know millions of examples where small budget teams have achieved tremendous success at the expense of intelligence, experience, coherence in work, will, and so on. Investing in startups is not the most important thing, and you can often even get along. Therefore, the longer the team works on its own funds, without being distracted by negotiations and meetings with external participants, the higher it will shoot.
If you are not a professional in your field, have not accumulated sufficient capital, cannot assemble a team of like-minded people, then your chances of success even with seed investments received under the presentation, for example, are zero.
I would highlight these components to focus on in order to achieve success:
- To be a professional, otherwise, you just will not have time to do what opens a window of opportunity for you
- Make friends with professionals to gather a good team and get accurate advice.
- To have your capital, otherwise, you just will not live in difficult times
- Be as economical as possible to have a better chance of making mistakes and correcting them
- Communicate with users/customers, because only they ultimately provide real knowledge, do you solve their problem?
- Work on the product, constantly improving exactly what makes users happy
- Understand the key metric that, as a pulse, shows whether there is life in this body
- Know the numbers, especially the cost of attracting the client, the income from it, Chern, LTV and so on
As you can see, there is not a word about investment.
Enjoy your fee-free trading at VHCEx.
Thank you, your VHCEx team!