Friday, July 10, 2009

The Chicken and the Egg Conundrum of Capitalism and Startups

On whether the heart of capitalism is greed or the desire to solve great problems (TechFlash):

I feel like every time I see people who are trying to come up with a business that they can monetize, instead of trying to think of a problem that they really want to solve, that they really care about solving, they just get it ass-backward, and they don't build a good product - Glenn Kelman, the founder of RedFin
Redfin's changing the way real estate is and will be sold. A pretty cool company, I should add, that just turned profitable (TechCrunch).

Personally, I've thought for quite some time that it's trust that bridges the gap. Customers have to believe that you'll solve their problems before they'll fork over the money. How big of a problem they feel it is and how well they think you'll solve it becomes directly related to the amount they'll pay.

No comments: