Profitable startups: the traditional way

This is a nice presentation (and point of view) on how to make (and run) profitable business. The nice thing is that it goes “retro” where gives arguments on that the revenue model of putting a price on a product/service, still works and that its really better that trying to be the next youtube, facebook, etc.

The reason I find it so interesting is because in Honduras, that is the way you start business and run them. You don’t look for VC money, go on the web and offer things free or go IPO. What is really done is start it with your own capital or take a loan and work [hard]. And those who do this are doing OK, the challenge that the middle class (which have the minimum resources to start a business) is very thin.

Small business are the fuel of a country economy and when this is not big enough the countries economy suffers and becomes very fragile and sensitive to world events and shifts. At the end of the day that is why David Heinemeier Hansson stats, is the best thing to do, especially for third world countries. The big challenge (again) is having enough people with enough resources to do so.

Note: I’m not stating that Honduras problems and third world status are a result of the middle class disappearing or being to small, although this a more complicated matter, still I think that middle class is the reflection of that overall status of a country.