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Just Say No to VC
Inc.com: “In the end, the best way to finance any business, and pay your bills, if – of course – out of cash flow. That is, make the business pay as it goes. Need to expand to take advantage of market conditions? Use your profits. If you don’t have the profits, maybe you shouldn’t be expanding.”
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Harold Jarche on August 11th, 2004 7:33 am
Dave Pollard says that this is the way to finance a “Natural Enterprise”:
“Where the traditional business develops its product, mass produces it, and then advertises to create demand for the product, Natural Enterprises start by identifying unmet customer needs, developing customized solutions, then delivering to the pre-qualified customers, and marketing virally.”
http://blogs.salon.com/0002007/2004/07/20.html#a812
Ankesh Kothari on August 12th, 2004 1:13 am
Thanks for publishing this informative blog.
I do agree with this post. But there are exceptions.
One that come to mind is subway. When the started, they were making a loss. So what did they do? They opened one more subway, and advertised in the locality that thanks to the people, subway is doing so good that they need another location.
The people read the ads, saw the new subway – thought subway has to be really good as its opened another outlet. If they were doing bad, they wouldnt open another outlet, would they?
So thinking that, more and more people started going to subway.
And subway made a profit. Today subway is huge!
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