
Are startups really worth it? - MarekKRK
Instead of testing new ideas, isn&#x27;t it simpler to find a proven product that sells and compete on quality or price?
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nostrademons
Simpler yes, but the economic returns are less.

The driver is supply & demand. Lots of people can & want to find a proven
product that sells and compete on quality or price. When they do this, it
drives the price down, and it continues to drive the price down until each of
these firms is making just barely above what they would taking a job
commensurate with their skills.

The economic returns from startups come from them having a monopoly on their
particular good or service when it turns out that people want it. If they do
nothing, eventually competition will drive their returns down to nothing as
well. But because they were working on a hard problem that most people thought
was useless, they have a head start that they can use to build a lead that
discourages competitors from entering the market. Nobody sane competes head-
to-head with Google or Facebook, because they managed to get such a head start
that you'll probably run out of money long before you can catch up to their
offering.

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CalChris
If what a startup is offering can be competed against on quality or price then
that startup will not be long for this world.

 _My widget is more expensive and, wait for it, less reliable!_

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hankmander
Could be. And that's another way to run a startup.

