Aspiring entrepreneurs frequently approach me personally being an angel investor, touting their revolutionary concept for still another online site that is dating. We agree the requirement is offered, with more than 91 million interested singles between the chronilogical age of 19 and 45 all over the world. Yet very little one in ecommerce makes hardly any money, I see since it comes with a larger list of challenges than most other opportunities.
Therefore, we encourage you to definitely evaluate these challenges as truth checks for your own personel company concept — dating or perhaps — before spending all of your some time somebody money that is else’s vain.
1. The marketplace is oversaturated with rivals.
In accordance with data, there are many than 5,000 internet dating sites global with 1,000 brand brand new people showing up each year. In the event that you look at your market on Bing and locate figures like these, it is best to search for another possibility where in actuality the wide range of rivals you will find is lower than 10.
2. This company is affected with the ‘Facebook model’ startup issue.
Numerous business opportunities, like this 1, require thousands or an incredible number of current users before brand brand new users and advertisers want to pay for a real income. Therefore, the investment in money and time needed before payback is huge. Facebook invested $150 million before good cashflow.
3. Obstacles to entry are tough to establish.
For a fresh startup, the simplest way to make sure success is always to register patents or any other intellectual home to help keep future rivals from copying your success. (more…)