Aspiring entrepreneurs frequently approach me personally as an angel investor, touting their revolutionary concept for still another online dating site. We agree the requirement is offered, with more than 91 million singles that are interested the chronilogical age of 19 and 45 across the world. Yet very little one in e-commerce 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 examine these challenges as truth checks for your own personel company idea – dating or elsewhere — before spending all of your some time some body money that is elseвЂ™s vain.
1. Industry has already been oversaturated with rivals.
Based on data, there are many than 5,000 internet dating sites global with 1,000 brand new people showing up on a yearly basis. I suggest you look for another opportunity where the number of competitors you can find is less than 10 if you check your market on Google and find numbers like these.
2. This company is affected with the ‘Facebook model’ startup issue.
Numerous online business offerings, like that one, require thousands or an incredible number of current users before brand new users and advertisers want to cover money that is real. Therefore, the investment in money and time needed before payback is huge. Facebook invested $150 million before good cashflow.
3. Obstacles to entry are hard to establish.
For a unique startup, the way that is best in order to guarantee success would be to register patents or other intellectual home to keep future competitors from copying your success.