It’s not enough to have a product or service that customers want, it has to also be profitable if you want to build a business. A few examples:
I’ve been using Udemy a lot lately. They have about a two month holding period on the revenue I earn on ticket sales. I want that to be less, but they need the cash flow for their business.
Paypal has all kinds of restrictions and charges transaction fees. To customers, cheaper is obviously better, but it wouldn’t necessary make for a viable business.
Portfolio companies of venture capital firms may want VCs to provide operational support, but it might take too much of the VC’s time and resources, and could reduce their returns.
It’s easy to give stuff away for free or cheap, but it might not make for a good business. I think it’s important to find balance between customer wants and business model. Sell something people want AND make sure it’s a viable business model.
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