Ask: Is Your Business Competing With Venture Capital?

Operating a profitable business can be challenging when competing against venture capital-funded businesses that prioritize rapid growth over immediate profitability. The speaker learned this lesson through personal experience when starting a project management software business, only to realize that he was entering a hyper-competitive market where capital mattered. Despite having a profitable agency, he underestimated the impact of competing with venture-funded businesses, ultimately losing ten million dollars in the venture world. As a result, the speaker now focuses on businesses where he can predict the outcome with reasonable certainty and avoid competing with venture capital. He prefers to pursue less risky ventures that do not require massive amounts of capital, focusing on 'boring' yet reliable businesses that allow him to operate without the pressures of competing with venture-funded companies.