# #038 - Brain vs Capital - how to build a business from components (Part 1), with Prof. Günter Faltin, Germany

- Show: [The Hardware Entrepreneur](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur)
- Published: 2017-09-27
- Length: 31m
- Page: https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-09-27-038-brain-vs-capital-how-to-build-a-business-from-components-part-1-with-prof-gu
- Listen: https://traffic.libsyn.com/secure/thehardwareentrepreneur/038_-_Brain_vs_Capital_-_how_to_build_a_business_from_components_Part_1_with_Prof._Gnter_Faltin_Germany.mp3

## Summary

Professor Günter Faltin, a pioneer of entrepreneurship education in Germany and founder of Teekampagne, explains his 'component principle' for building lean, capital-efficient businesses. He details how he bypassed traditional tea industry conventions by importing only Darjeeling tea in bulk, and describes how companies like 'What You're Doing' and 'Wash Company' operate 100% via outsourced components. Faltin argues that the quality of the business model, not capital, is the primary bottleneck for startups, advocating for simplicity and focus over diversification.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-09-27-038-brain-vs-capital-how-to-build-a-business-from-components-part-1-with-prof-gu#t=0) Introduction: Prof. Günter Faltin and Teekampagne
- [4:59](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-09-27-038-brain-vs-capital-how-to-build-a-business-from-components-part-1-with-prof-gu#t=299) Teekampagne: Bypassing Conventions with One Tea
- [15:13](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-09-27-038-brain-vs-capital-how-to-build-a-business-from-components-part-1-with-prof-gu#t=913) The Component Principle: Outsourcing to Stay Lean
- [21:26](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-09-27-038-brain-vs-capital-how-to-build-a-business-from-components-part-1-with-prof-gu#t=1286) Examples of Component-Based Businesses
- [26:37](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-09-27-038-brain-vs-capital-how-to-build-a-business-from-components-part-1-with-prof-gu#t=1597) Business Model Quality vs. Capital

## Topics

- [Starting a product company](https://hardwarepodcasts.com/topic/starting-a-company)
- [Validation & product-market fit](https://hardwarepodcasts.com/topic/validation-and-product-market-fit)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Hiring & workforce](https://hardwarepodcasts.com/topic/hiring-and-workforce)

## Most relevant to

early-stage companies

## Mentioned

- Teekampagne (company)
- Brain vs Capital (other)
- The 4-Hour Workweek (other)
- What You're Doing (company)
- Wash Company (company)
- Henkel (company)
- Unilever (company)
- Procter & Gamble (company)
- Freelancer.com (other)
- Upwork (other)

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- [Growing a Profitable Manufacturing Business Without Outside Investors w/ Kyle Ewing](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2025-10-14-growing-a-profitable-manufacturing-business-without-outside-investors-w-kyle-ewi) (The Manufacturing Executive)
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## Citing this page

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