George Deeb, startup expert and Managing Partner of Red Rocket Ventures, sits down with ASBN to talk about the difference between being a ‘vitamin’ startup versus a ‘painkiller’ startup. George says that while a vitamin is nice to have a painkiller is something that people need to have.
George advises that in order for businesses to become a painkiller they need to make sure that they develop a business that would be hard to replicate or knockoff. Instead of looking at your product from an internal perspective, look at it from an external perspective. If you were the customer of this product, ask yourself what it would do for you. What pain-point would it solve? Is it going to increase revenue, lower your expenses, or improve your user experience? The bigger impact you can have on your customer the better your business will be at being a painkiller.
However, George also notes that businesses who have the objective of being a vitamin startup, are typically looking to be bought off by a larger company at a later date. George says it’s important to know what you’re looking for. Are you building a venture capital-backed company, a lifestyle business, or perhaps a company that is simply meant to be an investment return? It all requires entrepreneurs to take a critical, and sometimes tough, look at their business because their business might not be what they think it is.
To learn more about whether or not your business is a vitamin or a painkiller, check out the full interview above. To hear more insight and expertise from George, just out his other interviews here.
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This has been a JBF Business Media production.