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Startups should not be hypotheses, they should be an arbitrage. If the cost to start is 0, a startup should not be involve in testing markets (which is not pos
by streetcat1 5y ago
Startups should not be hypotheses, they should be an arbitrage.
If the cost to start is 0, a startup should not be involve in testing markets (which is not possible), but should target large markets with a lot of competition (for example, book selling)
This is the last mover advantage.
Based on that you can skip the validation phase. Than the startup should become good at one aspect of this big market and just grow from there.
- theahura 5y agoThere's no guaranteed arbitrage. You're still making a prediction that the arbitrage opportunity exists.
- streetcat1 5y agoLook at the profit margin. Anything bigger than 60% percent can be attacked. Also, I am referring to software startup where there is no advantage to economy of scale, and the marginal cost is zero.