What If We Wants to Wait?

One thing you could do is, you rent some buildings, and then you make them fancier, and then you convince people to rent offices in the buildings from you for more than you pay for them. If this is a good business and you do it well, more money will come in than goes out, and you can use some of the extra money to rent some more buildings and make them fancier, so the business will grow. If it is not a good business, on the other hand, or if you are not good at it, then more money will go out than comes in, and you should stop doing it, because why are you doing a business that loses money.

This lemonade-stand sort of financial analysis is oversimplified, of course. Basically every business is going to have more money going out than coming in at first—you have to spend money to rent the buildings and make them fancier before you ever get a tenant—and so you’ll need access to some capital at the beginning. And if this is a good business, you will probably want it to grow rapidly early on so that you can have a head start on being the dominant player in the industry and making a lot of money from it. So you might want to raise a lot of capital early on, so you can rent lots of buildings all at once rather than waiting to make enough money from the first building to rent a second one.