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Clearly the size of the market is going to be a huge factor (if not the primary). If the market cap is $100mm and you think both you and your competitor can onl
by ScottWhigham 18y ago
Clearly the size of the market is going to be a huge factor (if not the primary). If the market cap is $100mm and you think both you and your competitor can only get 1%, then sayonara; it's probably not big enough to carry both of you. If, however, it is $100mm and you think that, between you, you can both capture 20% of that market, then it might be doable provided that you think you can capture about an equal share.
- teej 18y agoYou only need to capture %0.05 of a $100mm market to be ramen profitable.
- donw 18y agoIt depends on how much staff you need to get that one percent of the market. One percent of a hundred million dollars is still a million dollars... for a 1-4 person software company with minimal costs, that would be pretty damn reasonable.