3 ms·
> I would suggest that it is worth a lot this is not a particularly scalable advantage. if you plan on reaching every single corner of the global market, what
by princeb 6y ago
> I would suggest that it is worth a lot
this is not a particularly scalable advantage. if you plan on reaching every single corner of the global market, what does customer proximity mean? if you have to have an office everywhere you do business in, is it really a tech driven business or are you just doing bespoke sales? what's the cost of every additional dollar of revenue?
- csa 6y agoThe context of the discussion is ramen profitability and potential very early investment (angels, yc, etc.), and the commenter seemed to be looking for an inexpensive place to live. Early start ups are typically going from zero to one, so they really need to find a small and passionate customer base somewhere. As many folks have said before, often times it makes sense to do things that don’t scale early. This might mean in-person visits. YC has many stories of this working, like Airbnb and Stripe. I will also add that if you are looking to go down the VC path, being near VCs is important. You can raise VC being far away, but it is more difficult, and the associated costs will eat away at what the original commenter seems to be looking for, which is a cheap place to live.
- i_am_new_here 6y agoYes. It doesn't make sense. The prices (rent) adjust so that "if you can't very cleverly combine it with something else", which probably most people can't, then it makes sense to "stay where you are" and pay the premium compared to travel(-expenses) and a cheaper deal. If a significant amount of people would find feasible ways "to arbitrage (between locations)" the market would adjust (and prices in SV would drop). If you manage a setup in which you can profit, it is a special one and not the norm.