{"id":1732977,"date":"2016-01-25T13:36:35","date_gmt":"2016-01-25T18:36:35","guid":{"rendered":"https:\/\/blog.himy.ca.muslimwiki.ca\/2016\/01\/25\/the-barrier-to-entry-was-capital-and\/"},"modified":"2016-01-25T13:38:12","modified_gmt":"2016-01-25T18:38:12","slug":"the-barrier-to-entry-was-capital-and","status":"publish","type":"post","link":"https:\/\/himy.ca.muslimwiki.ca\/blog\/2016\/01\/25\/the-barrier-to-entry-was-capital-and\/","title":{"rendered":"The barrier to entry was capital and&#8230;"},"content":{"rendered":"<p>&#8220;The barrier to entry was capital and execution. Community- or technology-focused companies wouldn\u2019t do because it takes too much time and customer trust to make a lot of money. We tried cloning Airbnb, but it didn\u2019t work because it\u2019s so brand- and community-focused. Even though we had a staff of 400 staff in 15 offices within two months, it didn\u2019t work.<\/p>\n<p>Eventually we realized the best companies to clone were e-commerce businesses.&#8221;<\/p>\n<p>Once we picked which idea we wanted to do, the next step was all about growth. It was growth at all costs.<\/p>\n<p>There are three levers we used to successfully clone a business and make it grow faster than the original: expand geography where the service or product is located, create a larger product offering, or lower the pricing to undercut the competitor. Most of the time is was by having more products and undercutting the competitor.<\/p>\n<p>After picking the levers it was time to grow. The first six months is 100% week-over-week growth. Then after $1 million in revenue it\u2019s 20% growth every month. We built billion-dollar companies in 36 months.<\/p>\n<p>We\u2019d say to ourselves, \u201cWe\u2019re going to dominate this market then prove that we\u2019re growing revenue 20% month over month. Profit doesn\u2019t matter.\u201d We just needed to stay under a certain monthly burn rate. Then we\u2019d sell the company and let the buyer figure out how to make it profitable.&#8221;<\/p>\n<p>http:\/\/thehustle.co\/rocket-internet-oliver-samwer<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;The barrier to entry was capital and execution. Community- or technology-focused companies wouldn\u2019t do because it takes too much time and customer trust to make a lot of money. We tried cloning Airbnb, but it didn\u2019t work because it\u2019s so brand- and community-focused. Even though we had a staff of 400 staff in 15 offices [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"link","meta":[],"categories":[1],"tags":[530],"views":745,"_links":{"self":[{"href":"https:\/\/himy.ca.muslimwiki.ca\/blog\/wp-json\/wp\/v2\/posts\/1732977"}],"collection":[{"href":"https:\/\/himy.ca.muslimwiki.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/himy.ca.muslimwiki.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/himy.ca.muslimwiki.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/himy.ca.muslimwiki.ca\/blog\/wp-json\/wp\/v2\/comments?post=1732977"}],"version-history":[{"count":1,"href":"https:\/\/himy.ca.muslimwiki.ca\/blog\/wp-json\/wp\/v2\/posts\/1732977\/revisions"}],"predecessor-version":[{"id":1732978,"href":"https:\/\/himy.ca.muslimwiki.ca\/blog\/wp-json\/wp\/v2\/posts\/1732977\/revisions\/1732978"}],"wp:attachment":[{"href":"https:\/\/himy.ca.muslimwiki.ca\/blog\/wp-json\/wp\/v2\/media?parent=1732977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/himy.ca.muslimwiki.ca\/blog\/wp-json\/wp\/v2\/categories?post=1732977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/himy.ca.muslimwiki.ca\/blog\/wp-json\/wp\/v2\/tags?post=1732977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}