A few weeks ago I posted my thoughts on what being a startup should really be about.
I know some people don’t like posts like that, because it goes against the "you rock!" back-patting mentality of a room full of entrepreneurs. But it seems just having a website is often good enough to get all the congratulations you want.
Of course, I love cheerleaders.
People who connect startups to people they need to know and who they can work with. Anyone can tell you that when I like a startup, I love them. I make phone calls, introductions, and provide whatever help I can. I never get paid for it, I just do what I can.
The truth though, is that being a web business is a lot different than it used to be and the formula is changing. You can no longer just be the online-version of a bookstore or anything else. You have to compete on the web with other retailers, service providers, and products.
Just because you can do something on the web doesn’t mean you should.
It is easier than ever to get things started and to manage the costs of being a web startup, but it is harder than ever to get distribution. The Facebook App mania and the mass migration to the iPhone give you an idea of the thirst for distribution that developers have right now. If you get to the distribution channel early, and you build something that is perfectly timed, then you can win in the short term.
In the long term however, aggregators arise, and distribution gets consolidated. This same race is the one that killed movie producers decades ago, and indie game developers more recently. As Jonas pointed out, managing costs is only a small part of the equation.
Building something on the web is still the best place to do it.
- The web reduces costs.
- The web gives you direct and wide distribution.
- The web gives you more opportunities for scale.
But as I pointed out, those things do not come as easily as they used to, and all of the stories and advice you have heard in the last 10 years have a timer on them. They are quickly becoming irrelevant.
People put a premium on speed right now, it is called Shiny Object Syndrome and it has been very real both in the market and with entrepreneurs. Building on the web is no longer going to be about being first and being quick, it is going to be about being better and being reliable.
Don’t get caught building something because it is quick, easy, and the distribution is free.
Those aren’t good enough reasons anymore.
I enjoyed that blog post you posted. Will look into the blog.
There is a word, however, that communicates the entire blog by itself: commoditization. The ease of distribution on the web reduces barriers to entry, thus creating infinite substitution, eroding profit margins, until everything that can be digitized will be free.
Great post – some of the best innovations come from the “because we can” bucket – Twitter / Facebook, etc. so I'm not completely convinced that we shouldn't build things because they're quick or easy. Simplicity sometimes moves the needle with homeruns, similar to music/movies – though certainly it's a dice-throw or even worst odds.
The competition online is getting heated – though I fear that a lot of entrepreneurs are trying to reinvent the wheel or solve for communications solutions that we don't necessarily need or ask for (“the answer to the question that nobody asked”) what other kinds of start-ups do you think will gain traction in the near-term? Is there sufficient momentum to be looking at new models or revenue streams?
Great blog, I'm on the RSS feed moving forward.
I enjoyed that blog post you posted. Will look into the blog.
There is a word, however, that communicates the entire blog by itself: commoditization. The ease of distribution on the web reduces barriers to entry, thus creating infinite substitution, eroding profit margins, until everything that can be digitized will be free.
Great post – some of the best innovations come from the “because we can” bucket – Twitter / Facebook, etc. so I’m not completely convinced that we shouldn’t build things because they’re quick or easy. Simplicity sometimes moves the needle with homeruns, similar to music/movies – though certainly it’s a dice-throw or even worst odds.
The competition online is getting heated – though I fear that a lot of entrepreneurs are trying to reinvent the wheel or solve for communications solutions that we don’t necessarily need or ask for (“the answer to the question that nobody asked”) what other kinds of start-ups do you think will gain traction in the near-term? Is there sufficient momentum to be looking at new models or revenue streams?
Great blog, I’m on the RSS feed moving forward.
The short time span of these opportunities has as much to do with marketing as it does with market saturation. Too many web startups rely on PR to get traffic or in the case of the iPhone getting to the top of the charts.
The early launch hype can only get you covered by (large) blogs and take you to the top of aggregators for so long. People confuse this traffic as reaching product/market fit so they become complacent. They would be better off in the long term by finding their own channels that are sustainable and scalable.
For ex. I'd bet my money on the startup that dominates search engine results for a few keywords that match their products offering than the company that gets frequently featured on Techcrunch and Tweetmeme.
Good to see you posting on SN again Jevon.
The short time span of these opportunities has as much to do with marketing as it does with market saturation. Too many web startups rely on PR to get traffic or in the case of the iPhone getting to the top of the charts.
The early launch hype can only get you covered by (large) blogs and take you to the top of aggregators for so long. People confuse this traffic as reaching product/market fit so they become complacent. They would be better off in the long term by finding their own channels that are sustainable and scalable.
For ex. I’d bet my money on the startup that dominates search engine results for a few keywords that match their products offering than the company that gets frequently featured on Techcrunch and Tweetmeme.
Good to see you posting on SN again Jevon.
I agree that operating a successful eCommerce business requires much more than throwing up a website (however snazzy it may or may not be). There is the need to connect with customers and build long lasting relations that will carry you through both good and bad times.
The use of social media is no doubt a good place to turn to help build those relationships for your business. I work for a company called ShopTab that you might want to check out (http://www.facebook.com/shoptabapp) as this application helps businesses build customer loyalty and brand perception. We saw a huge opportunity for eCommerce business owners who wanted to leverage and monetize their Facebook presence. Facebook ShopTab App allows these business owners the ability to create a shop tab directly on their Facebook fan page.
We feel with the use of personalization through social media sites like Facebook companies can continue to build valuable relations through various media vehicles and keep their customers involved and happy.
Thanks,
–Kevin (http://www.twitter.com/shoptab)
I agree that operating a successful eCommerce business requires much more than throwing up a website (however snazzy it may or may not be). There is the need to connect with customers and build long lasting relations that will carry you through both good and bad times.
The use of social media is no doubt a good place to turn to help build those relationships for your business. I work for a company called ShopTab that you might want to check out (http://www.facebook.com/shoptabapp) as this application helps businesses build customer loyalty and brand perception. We saw a huge opportunity for eCommerce business owners who wanted to leverage and monetize their Facebook presence. Facebook ShopTab App allows these business owners the ability to create a shop tab directly on their Facebook fan page.
We feel with the use of personalization through social media sites like Facebook companies can continue to build valuable relations through various media vehicles and keep their customers involved and happy.
Thanks,
–Kevin (http://www.twitter.com/shoptab)
If a jewel falls into the mire, it remains as precious as before; and though dust should ascend to heaven, its former worthlessness will not be altered.
IMHO
Small Technology Business ? Startup
Startup ? Life Style Business
Life Style Business = Most Tech Companies in Canada
Not that there's anything wrong with that. But it would be nice if we saw more startups (and support for them) in Canada.
IMHO
Small Technology Business ? Startup
Startup ? Life Style Business
Life Style Business = Most Tech Companies in Canada
Not that there’s anything wrong with that. But it would be nice if we saw more startups (and support for them) in Canada.
a lot of words with little content
a lot of words with little content