I’ve consumed a lot of venture capital starting companies over the years. Not those insane amounts that you read about, but enough to make me wonder what the hell we did with all that money along the way. For the last few years, though, I’ve been fascinated with the idea that highly leveraged companies can be started on a shoestring because of the huge array of resources available through the web. Of course, it’s not only the availability of such resources, it’s the price. The competition that the same availability creates makes providers very competitive. You gotta love competition.
The web also breaks many of the old rules about distribution. While there remain many products and services and a large number of markets that still require real bag-carrying sales and service reps, many products that used to be sold face-to-face can now be sold and delivered virtually. Yeah, I know. It seems like this is old news. I’m surprised, however, with the large number of people who still don’t see it.
In his post titled, By the Numbers: How I built a Web 2.0, User-Generated Content, Citizen Journalism, Long-Tail, Social Media Site for $12,107.09, Guy Kawasaki discusses his efforts to start his new company, Truemors, with about as close to $0 in capital as possible. It’s a great post with dozens of lessons and pointers about how to leverage the massive resources available to everyone on the web, let alone it’s implicit access to a zillion customers. Definitely worth checking out.