These days it seems to be all about the money. When meeting partners at networking events one of the first questions is usually about the funding. A good funding seems to be a guarantee for startup success. They underestimate the power of Entrepreneurial commitment.
The Problem with the Money
Cash enables you to put your startup on a bigger scale; hire more and better people; spend more money on marketing. Recent examples have shown however, that once you received an investment you are likely to become addicted to further money. If further investment rounds fail, companies often collapse. And unlike many Entrepreneurs think, cash doesn’t solve all problems of a startup company. It can never replace Entrepreneurial commitment. As The Beatles sung “Money can’t buy me love”.
The Power of Commitment
A far more fundamental condition for startup success is Entrepreneurial commitment. With highly committed Entrepreneurs and the right business model you are able to lead your startup to success. Looking back at the early days of MyParfuem shows how commitment beats cash. After spending most of our personal savings on the development of the business model, we launched with an empty bank account. We spend days and nights crawling the internet for connections to blogger, journalists and websites to generate some traffic for our page. We send out or first press release to about 100 journalist for only 55€ on postage. Our first SEM campaign we launched with a 50€-Google voucher. Yet we managed to generate a six-digit revenue in less than 4 months.
The right Relationship
I’m not saying, that startups should not go for investments. I’m saying that cash is always an instrument and never the purpose of a startup company. Keep in mind that as an Entrepreneur you may be successful without external investment, but never without 100% commitment.0