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I think there are some things about dealing with tangible products that make businesses harder.

Look back at the dot-com bust. There were a lot of businesses that started and failed because they didn't have experience in the distribution of physical product, etc. (Peapod and Pets.com come to mind.)

If you're making stuff, then you've potentially got more fixed costs than you do than if you're running a software business. Those fixed costs alone can put you under.




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