Model of business venture

It is now possible to create products without starting companies around them. This is a huge advantage over the old model of trying to build and sell things.

It used to be that any inventor needed a staff and an office to produce any kind of physical goods at scale. Today, the internet has removed these barriers to creativity. Creators can move quickly and test new products without the burden of building an entire organization.

How Companies Create Friction

In the old days, a company was a basic requirement for anybody with the ambition to sell. You needed to put together a staff and raise funds if you ever wanted to create and distribute products. These days, the act of creation is much simpler.

You can use third-party services to delegate the vast majority of the work that companies used to do. It’s possible to assemble products, ship them to retailers, and handle the legal nuances of doing business without hiring any staff of your own.

As an idea gains momentum, there are ways to streamline the process and increase profits by doing more of the work in-house. However, these processes can happen after the product is in the market and doing well.

Iterate Faster

One of the biggest benefits of not starting a company is faster iteration. When you work for yourself, you can scratch your own itch and try a lot of new ideas. After all, most creative work does not happen in a predictable way. You need to tinker and experiment to find the best products.

An individual working to solve a personal problem will be more motivated than an employee in an office. When you really care about an idea, your mind will focus on it relentlessly until you make progress.

Companies Will Get Smaller

Freelancing and telecommuting are becoming more common with each new year. There are a lot of situations where it doesn’t make sense to have a ton of employees all drive to the same office each day.

The natural evolution of these trends is for the individual to become even more independent and self-reliant over time. People will begin to do business without the burden of maintaining a physical office space and a large staff.

If you look at how other fields have changed in the last few centuries, this trend looks obvious. Musicians once needed to hire entire orchestras to hear their compositions. Nowadays, musicians can create entire high-fidelity records with a single laptop in a bedroom. It’s a whole new world for creative people.

Trust Yourself and Build Products

The cornerstone of productivity is self-confidence. You don’t need to rely on an entire company just to get started with your work. Trust yourself to build a product before you expand upon it with a company. You’ll be amazed at how well this method works.

Article Source:https://www.forbes.com/sites/rimmaboshernitsan/2017/10/27/why-you-should-consider-developing-a-product-without-building-a-company-first/