If Tate asked a random person how they'd start a make-up business, they'd go:
- Find a good Make-Up brand, whitelabel their products
- Acquire a Warehouse to store these goods
- Trademark the Logo, Design a Website
- Begin Advertising
Upon observation, we notice that all these steps cost money, which is the opposite of what a Business should be doing, Making Money.
As per Tate, the correct steps are:
- Make a website, pump out advertisements
- After orders come in (Money is in the bank account, now)
- Send mails to the customers promising them a free gift, and inform them of delayed delivery due to high demand
- Spend some money, buy the make-up, ship it out to Customers
This minimizes both time invested, and risk involved. In both businesses, if shit hits the fan, there's less money involved in the beginning with Tate's plan.
It's a Pascal's wager, less to lose, more to gain.