Q. How do you explain starting a company in simple terms?
A. A simple way to understand the major steps of starting a company is to use a fishing analogy. First, you have the idea to go fishing (the idea to build a company). Your next step is to find a lake (or a market), and generally speaking, the bigger the better. Now you need to make sure there are fish (potential customers), so you toss out some bait (value proposition). Do any fish surface and nibble? No? Maybe you need a different type of bait. Yes? You know there are prospective consumers of what you have to offer. Now you need a pole to deliver the food (product that delivers value), so you construct that. You cast your line out, knowing that you’ll get some nibbles, but the question is, will they stay on long enough for you to reel them in (can you make the sale)? Yes? Then the key question is, are you catching enough fish to feed your family (making a profit). If so, you have yourself a company.