New PDF release: The Bootstrapper's Bible

By Seth Godin

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Extra resources for The Bootstrapper's Bible

Sample text

Faced with all the sensitivity analysis and business model mumbo-jumbo I talk about in this section, you might find it easy just to give up. ” Yeah, well, Bill Gates isnʼt so smart. Bill Gates thought the Internet was a fad. Bill Gates launched three database systems, all of which failed. Thereʼs never been an entrepreneur with a crystal ball. Thereʼs no way to know for sure whether your business is going to work, whether your targeted customers will buy, whether your choice of technology is a good one.

01 | i | U | X |+| h 42/103 f ChangeThis expensive to him than the carrying costs on his plant. The way he can maximize his profits is by making sure that every dollar he spends on personnel turns into the maximum amount of profit. In other words, he has to either raise prices or increase productivity to make more money. Youʼre going to be running this business a long time. Spend an extra month to figure out what your business model feels like and save yourself some headaches later. ” And the business you run should reflect what you know and love and are great at.

And your life, your neighborhood, your friends, and your needs are not like everyone elseʼs. The best way to answer the question is to start with a scalable metric—either cars (how many cars lead to how many stations) or, surprisingly, how many big gas companies there are. Either one will get you to a quick and defensible analysis. Instead of starting the business that makes stuff for people just like you, do some real research. Go to the library. Donʼt invent something that requires you to have a handle on the purchasing habits, the psychographics, and the changing demographics of the whole country.

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The Bootstrapper's Bible by Seth Godin


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