Chris had just raised funds for his early startup around US$100000. Happy to core, he wished to spend a large chunk on infrastructure and very less on people and technology. His venture started facing money crunch in 8 months..
Soon he through his contacts again rose another round of US$100000. This time he decided to give high remunerations to his team and invested in technology but didn’t keep enough amount for marketing..
He again rose US$100000 through his contacts and pushed everything in marketing and evolving business model..
50% gone of his equity, he realized he missed on the online marketing / customer preference need based development.
He was confused.. What model really works in business.
He wished he had pitched in good finance advisors right from day 1 of his business. He had a good link with angel investors which survived him for 3 years as Chris was a good entrepreneur 5 years back, but in these 5 years he got over confident, had gone complacent hence the issue.
Moral of the story: In business we cannot afford to complacent or over confident. We are running business on some one else’s business so we need to be careful.