16 February 2014

Anatomy of one folded startup

Great read (at link below) -- bottom line: what is your business model/strategy? Is it really viable?

Prim: Anatomy of a folded startup - Fortune Tech: " . . . Wu and Cao were ultimately faced with a decision: either seek out other wash-and-fold services to use -- a potentially endless process -- or operate their own laundromat. The latter seemed a better solution in the long term, but involved funneling hundreds of thousands of dollars into leasing or buying a facility and staffing it. And for every new market it entered, the process of building such an infrastructure was essentially rinse and repeat. According to Wu, that would have slowed down company growth. So after two months of deliberation, they pulled the plug on Prim. Wu insists running their own laundromats still would have made their startup a profitable business in five to 10 years, with revenues of $10 million to $15 million, but it was a direction the co-founders didn't want to go. Having studied computer science at Stanford, Wu and Cao held few skills for operating laundry facilities. And doing so would also take them away from their original goal of being a marketplace. "They didn't want to actually have to wash the laundry -- they wanted to be the connector," explains Tan...."

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The 7 Habits of Highly Effective Mediocre Entrepreneurs | TechCrunch: " . . . . persistence is not the self-help cliche “Keep going until you hit the finish line!”. The key slogan is, “Keep failing until you accidentally no longer fail.” That’s persistence." - James Altucher

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