Startups
To replicate a Car Salesman’s production, the Cafe needs to produce 300k to recoup the loss.
To replicate the 5 Silicon Valley Engineers... we need 5Million dollars to recoup! That’s JUST to break even.
No wonder startups succeed beyond *expectation.
Its because they *have to! Otherwise the same founders would have made an incredible amount of money ... without ever trying anything new!
The Opportunity Cost they face is so much higher, and their skills with Technology (a leverage, scaling machine), is more acute, that they *can produce insane results, because they *have to.
A startup has GOT to use technology as leverage.
An individual can quit their job, and attempt a restaurant or a cafe. And their goal as a proprietor will be to spend a few years until they can pay their salary.
Its very singular, consistent, and even linear.
They can hope to pay their salary, or % more.
Usually a person opening a cafe doesn’t think:
“Im gonna be a Billionaire from this.”
But Startups are different. They use technology as Leverage, increasing their output as individuals.
They also *usually sell products that can Scale.
A cafe can scale to a few thousand coffees served a day. Same with a restaurant. Franchising takes lots of time.
But a factory can increase output simply by increasing the order.
The limiting factor usually is demand not production.
An even simpler explanation of Startup Growth is the *need for Exponential Growth Beyond Salaries.
The Salary of a Car Salesman starting a Cafe has to be repeated at around 100k / year.
The Salary of 5 Silicon Valley Engineers is roughly 1.2MILLION / year.
If it takes them 2-3 years to take off and do reasonably well, that’s 5 Million in investment (plus costs of running the operation).
Think about that.
To replicate a Car Salesman’s production, the Cafe needs to produce 300k to recoup the loss.
To replicate the 5 Silicon Valley Engineers... we need 5Million dollars to recoup! That’s JUST to break even.
No wonder startups succeed beyond *expectation.
Its because they *have to! Otherwise the same founders would have made an incredible amount of money ... without ever trying anything new!
The Opportunity Cost they face is so much higher, and their skills with Technology (a leverage, scaling machine), is more acute, that they *can produce insane results, because they *have to.