A startup theory is a hypothesis of a system of ideas to explain how one can turn their business idea into a marketable product or service for a set group of interested individuals.
As an investor, you have two options or methods for how you can decide on which company to invest in. You can bet on the horse or the jockey. In the first pillar of startup, I argue that you must understand the people you need to successfully transform your idea into a marketable business.
Building the product or service is the second pillar of starting a business because it has to be just right in order to succeed in a competitive environment where copycats and industry leaders are waiting to push you off your initial track. Products or services without enough thought put into them will get eaten up by all of the other firms making more dominant solutions.
In this stage, we focus on understanding the investment to start, economics of the business, methods for financials management, and the eventual exit strategy. The best entrepreneurs have a keen understanding of their business's financials and where investment makes the largest impact.
Learn how to identify the ideal customer for your business and the best practices for reaching that end customer with your startup's product. You must first understand your customer and their needs before you can effectively create a value-adding product or service.