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Let's say the core business is to put customer designs on various products and sell them in a marketplace. So like Etsy, but instead of the artists making ever
by GVIrish 9y ago
Let's say the core business is to put customer designs on various products and sell them in a marketplace. So like Etsy, but instead of the artists making everything, the artist makes the design and the marketplace business produces it.
Becoming the number 1 player in that market could be profitable if said company could implement innovations that are difficult to replicate by others. But it's not the type of business where a network effect is going to shut out competitors. Customers will go to where they can get the best balance of price, quality, ease of use, and speed.
Spending a lot of VC funding selling dollar bills for 50 cents is not the only strategy, and it risks running out of money before getting to the promised land.
Running a profitable business doesn't mean you can't come to be the best in a market segment either. Profit can be reinvested in the business, and decisions can be made based on what makes sense for a sustainable business.