Web 2.0 Startup
I recently read an article in BRW interviewing a number of “technopreneurs” in the Web 2.0 scene. The interview explored a number of things that I have always thought about when tinkling around the edges of exploring the option of a young web startup. Below are some of the points I find interesting (and reinforcing) :-
1) Web 2.0 startup is low cost (reinforced)
Web 2.0 start ups are low cost. All you need are good brains, good idea, preservation and dedication.
The guys at RTM (Remember the Milk) spent a 18 - 20 hour day dedicated to their eventual success.
In short, you don’t need a lot of seed capital to do a Web 2.0 startup. The cost = time.
2) Web 2.0 startups are global (reinforced)
Web 2.0 startups are not geographically-constrained. Everyone subscribing to a ISP will have access to the NET. The only differentiator is the bandwidth for access. Web 2.0 startups penetrate the globe, and reach into the hands of those within reach of the internet.
37 Signals for example, with their awesome product Basecamp, offers their product and market it internationally (although priced with USD). With the advancement in electronic international currency trading, this means a startup in Malaysia can price their product in Malaysian Ringgits, or Indian Rupees for an Indian startup while maintaining that global audience reach.
3) Don’t worry about the business model (INTERESTING)
I have been thinking a lot about business model whenever a Web 2.0 startup idea sprung to my mind. Unfortunately, they have all not been too satisfactory!!! $ do not flow into a business with a “bad” business model, or the lack of one for traditional businesses.
Well, according to the RTM guys, the lack of one shouldn’t convince you not to do the startup!
With the minimal costs involved in a Web 2.0 startup, if it fails, the worst case would just be a “Good Lessons Learnt”. What’s important is to figure and build a user base, and the $$$ idea will flow!!! Not a bad thought, eh ?
Talk about emergent, rather than prescribed structure for evolvement of a business model (the basis for Web 2.0). In short, focus on customer, and then the money.
4) Keep your day job (reinforced)
Most of the technopreneurs all kept their day job while doing a startup on the side. Once their startup kicks off and is becoming successful, they will leave their job in order to fully focus on it. That having said, it is still not impossible to keep the day job while building on the startup (unless your platform is reaching the likes of Facebook…).
5) Try to solve a vertical problem, rather than horizontal
A lot of startup are focused around a vertical problem, rather than horizontal. Apologies for abusing the terms, vertical means a specialized industry, or domain-specific problems if applied within this context. Horizontal means a wider audience.
For example, RTM acts as a personal online diary for users, while Basecamp solves the need for project management and collaboration for projects with disparate resources.
In summary, the article reinforced a lot of my thoughts and suspicious about running a successful web startup. It was definitely worth the reading.
Discussion Area - Leave a Comment