How to exploit your startup’s constraints
From Kellogg Insight
The enthusiasm that David Schonthal has for startups is not based solely on how much funding they might raise, the chance they may come up with a giant-killing innovation, or the potential for a massive buyout from an established firm. Instead, Schonthal, an entrepreneur focused on the health care industry and a clinical professor of entrepreneurship at the Kellogg School, is fascinated by how startups exploit their constraints.
“The interesting thing about constraints is how they can be used positively,” Schonthal says.
Let’s face it: given limited funding, a small-if-intrepid staff, and unproven—or even nonexistent—products, most startups have to be creative just to get off the ground. But being small has the advantages of high-speed product adaptability and close contact with customers. Having little funding means throwing money at whatever problems arise is not an option. So other creative solutions arise.
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