Last month I had an argument with a friend of mine.
His grand idea.
Which, by the way is fucking brilliant but in my honest opinion flawed in execution. The problem is that to actually pull off such a feat he’d need a market much larger than the market he chose if the project was to be viable.
Furthermore the market he chose doesn’t exactly have the “capacity” to adopt his idea.
It doesn’t help that he’s trying to penetrate an already saturated market where the competition has fucktons of advertising money and can flush him out.
Not saying his idea is impossible.
But I AM saying if he’s to go along with this… he is going to face several challenges that will make this a 90 degree uphill climb.
In fact for better or worse unless he is willing to sell his soul to get some of that venture capitalist moolah he is NOT going to be able to sustain this idea because it WON’T be profitable.
One of his primary competitors in the global market has been operating at a loss for over 4 years running now and it’s investors are threatening to sue.
This is a cutthroat market he wants to enter. If one of the “top dogs” of this market can’t even break even with a world wide audience… it’s going to be harder to pull this off.
Especially in a country with a small population such as ours.
Where the financial infrastructure is not yet developed enough to allow maximum adoption of online payments. Where the people are so untrusting towards buying shit online it’s crazy.
This market simply is NOT ready for such a project.
As I said earlier.
I’m not trying to dissuade him.
But I AM trying to point out that he is about to enter an oversaturated red ocean where his closest competitors are either:
•Running on investor moolah
•Started so long ago that the first webpages where up before the internet had a chance to drop it’s balls
•Are so synonymous with their industries it would take Chuck Norris’ intervention to take them down.
•Are so old that they’ve been up longer than most kids where a mere spark in their father’s daddy bags.
Moral of all this?
Before you launch a business in a market… it’s vital to check not only your competitors. But also how your competitors are making a profit. IF they’re even making a profit.
You must analyze your market and potential customers.
You much make sure they’re in high enough numbers to make this a viable market.
You must make sure your target customers can afford what you’re going to offer.
You must make sure if you step into that market and try claiming your share of the pie… that you’re not fighting a 90 degree uphill battle.
It sound like a lot of work because it is.
And it will save you tons of headaches.
Till the next wave of madness… Vae Victis…
“On with the show”
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