http://blog.wasabiventures.com/deep-pockets-short-arms/ The Entrepreneur's Bible: Business at its Best Sun, 05 Feb 2012 11:34:02 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://blog.wasabiventures.com/deep-pockets-short-arms/comment-page-1/#comment-138 Marc Dangeard Wed, 24 Sep 2008 05:52:15 +0000 http://blog.wasabiventures.com/?p=52#comment-138 Indeed this is a skill: being able to ignore the fact that you have enough money to pay for a lot of things, and expect rather that the business will pay for itself within a very short time. I have seen several "serial entrepreneurs" fall into the trap of self financing their new venture to the point where they loose all the wealth they had accumulated in the previous one. So it is not just an issue of keeping control of cost, it is an issue of imposing on yourself a limit to what you agree to spend from your own pocket into the business. After an initial investment to build a prototype, you should trust the market to tell you what this proposed solution is worth. And then try to fail fast if you are going to fail (it happens to the best). Indeed this is a skill: being able to ignore the fact that you have enough money to pay for a lot of things, and expect rather that the business will pay for itself within a very short time.
I have seen several “serial entrepreneurs” fall into the trap of self financing their new venture to the point where they loose all the wealth they had accumulated in the previous one.
So it is not just an issue of keeping control of cost, it is an issue of imposing on yourself a limit to what you agree to spend from your own pocket into the business. After an initial investment to build a prototype, you should trust the market to tell you what this proposed solution is worth. And then try to fail fast if you are going to fail (it happens to the best).

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