A friend of mine actually made his business work. Just last
month, he raised a total of £5000 in profit just on his own. His products were
just hand-made with materials that he orders overseas. He gains a 20% profit on
each of his products.
I was happy for him because his business was growing fast. Soon,
he would need employees and specialised machines to help him do his job.
Then it dawned on me, I don’t think it was really something
good to have your business grow this fast.
He began his business working on the usual model for start-up
companies. He had defined and created a steady growth plan for his business. He
then endorsed it to a venture capital and intended to grow his business as
quick as he could.
The last step to his plan was to make his business stocks
public.
Sure, you could grow your business fast, but that second
step, endorsing your business plan to a venture capital, once they agree, you
also agree to give almost half of your business to them. They may only care
about their benefits for two to three years. This isn’t good especially if you
just want money to grow.
As long as my friend could not find founders or investors
who are interested in seeing the business grow within 50 years. The sad thing
is that with quick growth, comes higher product prices.
