What would I do with three million dollars from a venture capitalist?

What would I do with three million dollars from a venture capitalist?

 

            The venture capitalist system is set up to give big sums of money in exchange for owning a percentage of the new company. 

 

            For a very small self-employed enterprise, it has intriguing trade-offs.  A stranger is willing to give you a lot on money for X % of the future value of the business { beginning value = almost nothing}.

 

            It is very enticing.  It’s not a loan, so I don’t have to pay it back.  But if your business is successful, someone else will own part of it and want to tell you what to do.

 

            In the current plant boom, a retail plant shop could use the money to open multiple plant stores in several cities to dominate a region quickly.

 

            A wholesale grower could build acres of greenhouses to support the large volume of fresh produce to supply national grocery chains.

 

            I’m glad this financial mechanism exists.  But it has nothing to do with me.

 

            My innovation of producing ‘wittle’ hanging houseplants is beyond the ‘minimum viable product’ test.  We already know they sell.

 

           

The limiting factor is supply.

 

Contract growing is available, if pursued. A slow rollout can test the market.  Grow 1,000 hanging baskets per week (50,000/year) and see what happens.  If demand pulls you in, double that.

 

If the ‘wittle’ brand can dominate the region {60 customers X 40 hanging houseplants/week} = {2400/week = 120,000/year}, then decide if three million dollars would help you?

 

Right now, I would not know what to do with three million dollars.