# #039 - Brain vs Capital - how to build a business from components (Part 2), with Prof. Günter Faltin, Germany

- Show: [The Hardware Entrepreneur](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur)
- Published: 2017-10-11
- Length: 32m
- Page: https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-10-11-039-brain-vs-capital-how-to-build-a-business-from-components-part-2-with-prof-gu
- Listen: https://traffic.libsyn.com/secure/thehardwareentrepreneur/039_-_Brain_vs_Capital_-_how_to_build_a_business_from_components_Part_2.mp3

## Summary

Professor Günter Faltin, author of 'Brain vs Capital', discusses the fundamental clash between the creative mindset of entrepreneurs and the efficiency-focused mindset of business administrators (MBA types). He argues that business plans are often dangerous because they solidify assumptions that are frequently wrong, urging founders to prioritize customer validation and adaptable business models over rigid planning. Faltin also emphasizes the 'component principle,' advising that startups in high-cost regions must hire expensive professionals to manage complex interfaces, as a viable business model must be able to afford this expertise.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-10-11-039-brain-vs-capital-how-to-build-a-business-from-components-part-2-with-prof-gu#t=0) Entrepreneur vs. Administrator Mindsets
- [6:35](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-10-11-039-brain-vs-capital-how-to-build-a-business-from-components-part-2-with-prof-gu#t=395) The Dangers of Fixed Business Plans
- [10:48](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-10-11-039-brain-vs-capital-how-to-build-a-business-from-components-part-2-with-prof-gu#t=648) Teaching Entrepreneurship for the Many
- [14:33](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-10-11-039-brain-vs-capital-how-to-build-a-business-from-components-part-2-with-prof-gu#t=873) Outsourcing and the Cost of Professionals
- [19:12](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-10-11-039-brain-vs-capital-how-to-build-a-business-from-components-part-2-with-prof-gu#t=1152) Entrepreneurship as Personal Development
- [22:18](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-10-11-039-brain-vs-capital-how-to-build-a-business-from-components-part-2-with-prof-gu#t=1338) Ultrafast Round: Advice and Cultural Differences

## Topics

- [Validation & product-market fit](https://hardwarepodcasts.com/topic/validation-and-product-market-fit)
- [Starting a product company](https://hardwarepodcasts.com/topic/starting-a-company)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Leadership, teams & culture](https://hardwarepodcasts.com/topic/leadership-and-culture)
- [Careers & education](https://hardwarepodcasts.com/topic/engineering-careers-and-education)

## Most relevant to

founders before launch

## Mentioned

- Brain vs Capital (other)
- Tim Ferriss (other)
- The 4 Hour Work Week (other)
- Joseph Schumpeter (other)
- Entrepreneurship Summit (other)

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- [S4E39 Kyle Valiton | Common Pitfalls of Startups, Dealing With Stress, Setting Budgets](https://hardwarepodcasts.com/podcast/being-an-engineer/2023-10-13-s4e39-kyle-valiton-common-pitfalls-of-startups-dealing-with-stress-setting-budge) (Being an Engineer)
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## Citing this page

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