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If an idea works but you don't scale it to some sort of monopoly using your tech advantage or lock in systems a competitor with VC money will eventually outpric
by LoSboccacc 10y ago
If an idea works but you don't scale it to some sort of monopoly using your tech advantage or lock in systems a competitor with VC money will eventually outprice you out of the market, get an unbreakable hold on the business whole then convert some aspect of it to premium to monetize the now huge user base.
- deleted 10y ago[deleted]
- schwarrrtz 10y agoThis is not necessarily true. For example, your market may be too small / niche to attract venture backed companies but large enough to sustain your lifestyle business. Edit: Foiled by my delay settings! Damn.
- tjholowaychuk 10y agoDepends on the product I suppose, if it's niche enough you may not have big competitors at all. I choose to entire a SaaS market that is already monopolized but I'm still paying my bills. That's definitely something to watch out for though, I think it's best to have many smaller products for redundancy, at least that's my plan.
- eloff 10y agoThis can work and be a great, profitable business. But a lot of these kinds of markets are winner takes all. Which is why companies compete with VC money to be that winner. You don't have great chances of doing that without VC capital if you have VC funded competitors. But your objective may not be go big or go broke - and you may well end up personally happier for being more balanced in your life. That's perfectly fine in my opinion, and very underrated here on HN.