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How To Make Money (The Startup Way)

How To Make Money (The Startup Way)

Having a good job is no longer the preferred way of making money among the younger people. This is why:

startup money infographic

Starting a company, as a way of money making is riskier but more straightforward than working a job. There is no boss to decide what happens to you. There are 4 protagonists: you, your customers, your investors, and your co-founder. If you succeed, they succeed. And the way to making money for you looks like this:

  1. Find a product (or idea) that is popular but not yet perfect
  2. Buy one and study it in detail
  3. Figure out how to improve it
  4. Make a prototype
  5. Show the prototype to 100 people
  6. Remake it until people are willing to pre-order (for example on Kickstarter)
  7. Find a co-founder who can build it with you
  8. Split the equity– give your co-founder 50%, but use a vesting agreement so that their share becomes worth more the longer they work on the company
  9. Find an investor. This can be a person who has a lot of money (an angel investor)
  10. Give her or him 10% of your company
  11. Make the product
  12. Sell your product to 1 Million people
  13. Get more money (this time from VCs)
  14. List your company on stock exchange (this is after you’ve either raised a lot of money or have a lot of revenue, or better yet profit)
  15. Sell a lot of shares when you list on stock exchange
  16. Then just wait out the cooling off period (about 6 months) and you will have your money

[Editor’s Note:  This article was written by Anna Vital and originally published at Funders And Founders. Copyright 2015.]

Note: The views and opinions expressed are solely those of the author and does not necessarily reflect the views held by Inc42, its creators or employees. Inc42 is not responsible for the accuracy of any of the information supplied by guest bloggers.

Author

Anna Vital

Influencer

Anna Vital is an infographic author and visual journalist at Funders and Founders. She loves to visualize the lives of people, companies, and ideas. Her dream is to create a visual encyclopedia where every entry is an infographic. Anna holds a Juris Doctor and a BA in Linguistics. She speaks Chinese and Ukrainian. She is excited to see how her visual thinking method can help people visualize their own ideas.

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