The Web Based Startup
Most budding entrepreneurs look towards the web to build a business. So why is this? Is it because it’s a fad or is it because the web is going through a very high growth phase? Maybe a bit of both, but the main reasons are different and listed below.
Low Initial Investment — One of the advantages the web has is that the initial investment to launch your business is very low as compared to more asset heavy businesses. Entrepreneurs can invest a little bit of money, go live, get market feedback and decide the fate of the business, which is very difficult to do in non-web based businesses.
Reach — Being on the web means that you instantly have a global reach. This is probably the biggest advantage of the web. Though you will be required to promote your business on the web as well, a customer sitting in any part of the world can use your service (though this depends on the business model of the startup). Note: This might actually also work against the business at times as the web is one big, uniform space where all businesses compete. Hence a new startup will end up competing with the bigger players in the same space from day 1 itself.
Human Behavior — Slowly people are moving to the web for all their needs. This trend favors businesses which are web based.