From a Vertical Integration perspective, there may be an iterative path to success that greatly reduces the odds of failure. By Bootstrapping (Or limited Funding) toward vertical integration, the company is forced to evaluate each integration step from a financial perspective. (Will this investment in integration have a reasonable pay back period and Gross Margin improvement)
I call it being your own VC. Each step of integration should have a noticeable improvement to the companies Gross Margins. In order to even start Vertical integration you need to have PMF and a base Gross Margin to initially grow the company.
This also allows banks/finance companies to fund equipment purchase for a successful growing company as it adds its next vertical integration.
Reading this, and just needed to mention that although for most Apple software, I agree your take but Keynote and Numbers over PP & Excel for me. (and Apple Music)
"Anduril, Meter, and others seem to be doing it now"
I would say that these companies still have to go through a "trough of disillusionment" with a tonne of capital to help them get through that stage in order to ensure their manufacturing can scale.
They have great products and concepts but their real challenge now is delivering that en masse... and it's going to be harder than getting to the point where they are at now.
l am excited for your next piece. But remember to rest up!!
Love it! The dial is on 11 but so is the prize.
From a Vertical Integration perspective, there may be an iterative path to success that greatly reduces the odds of failure. By Bootstrapping (Or limited Funding) toward vertical integration, the company is forced to evaluate each integration step from a financial perspective. (Will this investment in integration have a reasonable pay back period and Gross Margin improvement)
I call it being your own VC. Each step of integration should have a noticeable improvement to the companies Gross Margins. In order to even start Vertical integration you need to have PMF and a base Gross Margin to initially grow the company.
This also allows banks/finance companies to fund equipment purchase for a successful growing company as it adds its next vertical integration.
AKA, you dont have to do it all at once.
Reading this, and just needed to mention that although for most Apple software, I agree your take but Keynote and Numbers over PP & Excel for me. (and Apple Music)
Instagram was not Blendr. Blender is extant graphics software. Instagram was formerly known as Burbn. https://www.theatlantic.com/technology/archive/2014/07/instagram-used-to-be-called-brbn/373815/
I’m enjoying reading these articles. I’m learning a lot and hoping to apply to my business.
"Anduril, Meter, and others seem to be doing it now"
I would say that these companies still have to go through a "trough of disillusionment" with a tonne of capital to help them get through that stage in order to ensure their manufacturing can scale.
They have great products and concepts but their real challenge now is delivering that en masse... and it's going to be harder than getting to the point where they are at now.