How to build an unsuccessful company: Business models (I)
By Jaime Medina
Each day, many aspiring entrepreneurs approach us with a common refrain: "I want to start a business" or "I have a business idea." We are always eager to encourage entrepreneurship, (soon we'll write a series of articles on the not-so-high risks of starting a business and the not-so-low risks of not starting one).
But what most of the people do not realize is how to start a business and which model to follow: should it be a startup model or an SME model?
It's crucial for a startup's success that the business model, financing model, and the founder's personal project all align. If someone wants to fund a startup the way an SME is funded, it won’t work. Similarly, if someone wants to start a startup but isn't willing to commit to the personal journey that entails, it won’t succeed. It's critical to recognize when a business should pursue a startup path versus an SME path.
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