You may have heard the saying: “It’s not what you know, but who you know?”
AppIt Ventures has been built off of a foundation of mutually-beneficial relationships. We focus on developing affordable mobile applications and do this by leveraging both domestic and international development teams to help keep our client out-of-pocket costs low. We also have revenue-sharing opportunities with our clients to align incentives and further reduce their costs.
Instead of transactional relationships (where we some try to get the biggest piece of the proverbial pie), we treat every relationship as if we are trying to build it for the next decade – where we try to make a much, much larger pie.
HBR professor Noam Wasserman discusses The Founder’s Dilemma and challenges entrepreneurs to make a decision from day one:
1. Do you want to be King?
2. Do you want to be Rich?
As King, you have full control and use profits to build the business. The benefit to this option is you maintain full control but the risk is that it may take time to grow (scale) your business.
As Rich, you have your stakeholders share in the wealth and therefore increase the enterprise value of the business idea. The benefit is other people help build the business (aligned economics), the risk is that you may lose control.
So as an entrepreneur with a mobile app idea, what do you want to be, King or Rich?