Saved by sari and
You Are Your Business Model -
the question of what kind of company you want to build is as urgent and personal as it ever was. People will always struggle with it. The old models of “venture-backed” and “bootstrapped” both feel inadequate to me.
every.to • What Kind of Company Do You Want to Build?
VC business model isn't to build a traditional profitable business that beats the competition by providing a superior product/service for a competitive price. It is to dominate the competition by subsidizing the real cost to consumers, until you have taken over the market and can raise the price and lower the quality of the product/service.
So you have to be careful and you have to be very attentive about how you build your company and how you add different product lines over time. And make sure the incentives align, not only for you as a business but also for your users. And I think we've kind of seen sort of at Facebook, if you look at their user growth in the US, which is where mos... See more
Patrick O'Shaughnessy • The Past, Present, and Future of Consumer Social Companies
Entrepreneurs in the expertise business — when faced with a money problem — just make more money rather than looking for efficiencies. Entrepreneurial experts are notoriously terrible at efficiency and cost control.