Product vs. Business
Is it a product or a business?
As an investor in start-ups I’ve noticed a trend where people believe that developing a product is the same as developing a business. Not true. A product is sold TO a business and the only exit is to sell your product to another business. A business is sold AS a business to another business.
Yes, it is understood that in order to make a single product you need to build it, have staff, figure out financing, protect your IP, sell to a limited number of retailers and wholesalers, etc., but, still, it’s not the same thing as building a business with a suite of products and multiple customers.
Seasoned investors know the difference between a product and a business, especially when they hear a pitch. This small point makes a big difference in strategy. It would be good to contemplate this.
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