Or in other words a bad idea. An idea is not a good idea if your LCV is less than your CAC. Please when you see a gap in the market investigate why there is a gap. It is possible that you are a genius that can see things that no one else can, but also consider that you are walking into a death trap.
That's one way of looking at it. I guess my point was more, understand your real challenge is going to be acquisition costs going in and focus on that.
With that mentality, it's likely you try to have a very low burn rate and dominate one city before expanding to another.
You can tackle it either way, but keeping your costs down is certainly the smarter way to go if you are spending your own money.
The problem is investors will put pressure on you to expand as fast as possible without concern for your CAC. They don't really care if you bomb out as they are just looking for the growth rocket they can ride to the stars - if 9 out 10 blow up on the launch pad well that is just a problem for the entrepreneurs who have put their life and soul in.
