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A social networking website probably has a lot lower barrier to entry than a restaurant does.
by imp 18y ago
A social networking website probably has a lot lower barrier to entry than a restaurant does.
- dmix 18y agoYeah, I've come to realize that most ad supported social sites are very high risk. Social networks are not very hard to build but depend on a very large scale of users. On the other hand restaurants are more expensive to start and maintain but can survive off a smaller market. Both are saturated with competition and have low margins.
- whacked_new 18y agoRestaurants have a far higher barrier of entry: interior design, inventory management, supply chain, quality control, staffing, just to name a few headaches. That's not even calling into question your competence (assuming you are the chief operator).
- dmix 18y agoBarriers to entry includes more then start-up costs. A restaurant can open up on a busy street and advertise in local newspapers to get a sustainable customer base. The marketing and PR costs for a social network are much much higher. They would need at least 100,000 users to A) provide value as a social network and B) make revenue from PPC ads.