You know what they say: 3 micro-breweries in one town: better business for everyone. Especially, if they work together.
Those who read business plans on a regular basis begin to see certain patterns that immediately send up red flags. One of the most common that I see is a when the entrepreneur downplays, or even dismisses their competition. Sometimes it is due to lack of careful research, sometimes it is due to tunnel vision, sometimes it is arrogance, and sometimes it is due to denial. But whatever the cause, ignoring the competition is most often deadly for a new business.
A risky business model is one that is one that is based on a dependent relationship with just a handful or even just one main customer. Inc.com has a good case in point from the auto industry in which GM is looking to cut its costs on the backs of its suppliers. Many of these companies are small businesses that are completely dependent on GM for their survival.
At dinner last night with Scott Moody (the founder of Throw – which was acquired by Excite in 1998), we began talking about the difference on the web between groups and individuals. While we slurped down our intensely spicy Vietnamese soup, Scott suggested that much of the current generation of web software has a conceptual design flaw – namely that it has been created for individuals (one) rather than groups (many) even though it is used by many (and the great utility of most of the software is when it is used by many).
I’m so sick of “Web 2.0″ I could puke. It’s just a bunch of bored technologists who don’t have jobs and have nothing better to do than make up new phrases and have a reason to go give talks and hear themselves speak. I remember last year Web 2.0 was web services. Now all the sudden Web 2.0 is AJAX and RSS. Please people get a frickin grip!!!!