Which of the 4 components in a startup business is more important?
Take your time…you do not have to answer right away. Pretty tough eh??
I know, as a serial entrepreneur and budding venture capitalist I have learned a few things about startups. If you would have asked me this question back in 2005 when I got my first real taste of a start up, I would answer, “the product or service is most important.” Ask me the same question in 2006, I probably would have answered, “man it’s all about the market.” Fast forward even further to late 2008 and I would answer the exact same question with, “I think I got, it’s all about the right business model.” Contrarily I have seen that a large number venture capitalist they say, “its all about the team, they make it happen.”
So what are you suppose to believe? I have given you four totally different answers to the exact same question. Confused?!? Don’t be.
I submit to you that ALL four components of a start up are very important.
Look at it like this:
So the best situation to be in should look like this:
There you have it. When it comes to starting a business or investing in a startup the way you can separate the winners from the loser is to see how all four components work together.