The only way to be and stay in business is to be able to make two dollars out of one dollar.
Or one hundred dollars out of ten dollars.
Or one thousand dollars out of one hundred dollars.
And so on.
Whenever you're able to multiply your (or someone else's) money, you're in business.
And will most likely be able to stay in business for a while.
Depending on whether the volume of your sales and the resulting profit is big enough for you to survive.
It seems so simple. Yet, many people tend to get it wrong. And when I say many people I mean I..
Most people confuse it with getting into business.
Getting into business means that you might maybe one day be able to run a business.
And then be able to stay in business. But it doesn't mean that you already are in business.
It's a small difference of just one tiny word.
And this tiny word might mean that you either stay in business or have to get out of business.
Here are the most common things people confuse with being and staying in business:
Having built a first prototype or MVP
Being featured on Techcrunch, Producthunt, etc.
Raising money from investors
Generating your first revenues
Signing your first LOIs (letter of intents)
Closing your first deals.
Having cash left on the bank for a few months.
None of the above things mean that you are and will stay in business. All of the above might maybe in the future lead to you being and staying in business.
But for now they don't mean anything. And most importantly they don't mean that you are and will stay in business.
I know it's tough to accept. I'm struggling with this tiny difference of just one word every single day.
This tiny little word might be the reason why I might have to go out of business soon. Why most businesses have to go out of business.
If I think about it, I might never really have been in business. Ever.
For every dollar I invest, I get less than one dollar in return. Hence, I'm not in business.
And that's the difference one tiny little word can make.
It's the difference between being able to stay in business and having to go out of business...