On Twitter Erik gets asked a lot about venture capital. It seems to be an excuse for many would-be entrepreneurs to not start their business. There are a lot of reasons or excuses to not start a business but if you really want to have one you have to find your way around them. A lack of funds seems to be the number one reason why people don’t get started. But Erik believes it’s not always needed in the beginning.
When Erik hears this reason from an aspiring entrepreneur he will publicly or privately message them and ask them if they have even tried selling their product or service. Often times the answer is no. The process of selling your product or service is known as validating your business idea. Erik believes that in the beginning this is more important than coming up with the funds to start your business.
He suggests buying cheap or used materials and equipment to get yourself started. Next, begin selling your minimum viable product. Then, sell it again. Repeat that process over and over, improving your product or service, and validating you have something to offer that others want to buy. As time goes on you may need some capital to grow your business. But, don’t let the lack of capital be the reason you don’t start.