Trends should build a business, not be the business.
CAMBRIDGE, UK - I feel I'm pounding my head against the wall on this one.
Never base your entire business and product distribution on solving the problem of a single internet company.
This should only be used if your business model is to get bought out by that internet company, and you're in a strong position to be bought.
The great thing about the internet is it's flexible. But this flexibility means fast change. It means that unlike physical businesses they can change rules and access fast. Your business can be blocked out overnight.
I've tried to find a few examples.
1/ If you offer an IKEA assembly service (me hole!), chances are that store isn't going anywhere overnight - if their profits are booming, so are yours. If they launch their own assembly service, they can't block you from doing it too. If they shut shop, another self-assembly company will replace them. If your business model works, you could claim to be pretty safe. Here you are solving the problem of self-assembly furniture, you're not solving the problem of IKEA.
2/ Now, if your business is based on doing some API trickery to help people only on Facebook, or only on Twitter, or only on the iPhone do something, you are solving the problem for Facebook, Twitter, and Apple. This is like being the self assembly company, but every time you want to assemble a piece of furniture you have to rent a special screwdriver from IKEA and return it right-after. Would you start a business based on that? Would you take that risk that IKEA might stop you one day?
This news today is a great example of what is to come for many of these companies. See ya. Buh Bye.
All of these hooks into these tools should be used as quick wins or to build a business, not be the business. It's critical to surf the trends, not swim in them. There is a big difference between being a business and being a feature.
Look & Taste is a good example. They launched a great iPhone App to build their business. If Apple pull the plug or lock-down a feature, they've still got their business and they'll find another route to market.
Qwitter launched Contrast onto the international stage, gaining them speaking opportunities and new clients for their business. The job here is done, Twitter blocking them or not.
-Robin.
Posted on October 27, 2009
Leave a comment...