by David MullingsI recently received my last issue of Business 2.0 and just had to recommend the following article to the readers of this column. you can find it here: The Kopy Kat Kids http://money.cnn.com/2007/10/02/technology/kopy_kat_kids.biz2/index.htm?postversion=2007100214}In my advisory capacities with mentees, other entrepreneurs and business-owners, I always pass on a vital lesson I learnt during my MBA program – you don’t have to come up with something new to be successful.This article is a perfect example of how adaption of successful ideas for a different culture can make millions and it is a playbook that many of us should be taking a look at. A few people prefer to only focus on original ideas – that is their prerogative – but there is no doubt that adapting a proven idea is the easier way to success and profit than being original.The story of the Samwer brothers provides one clear path to success – their first start-up, Alando, a German clone of ebay, was purchased by ebay itself for $50 million 5 months after it launched. They knew that debit cards were the preferred payment method in their culture and built their site around that, unlike ebay’s credit card system.Granted, the Caribbean faces many different challenges – but who better to overcome them than Caribbean people?Ultimately, companies with business models focused on advertising as the main revenue source will have to find companies interested in advertising to Caribbean nationals or target a demographic that the advertisers want to get to (like promoting Caribbean content to US African-Americans). A Caribbean Facebook clone will only work if companies targeting such a demographic (which can be divided further like any demographic) are willing to spend real money for online advertising, and very few do at this time – but you always have to start somewhere. The point of a business is to generate profits and wealth for the stakeholders. If the venture can change the World too, or your part of the World, then even better, but you need profit to be able to do anything.Adaptation is a viable option so don’t overlook it.
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This article focuses on something that I think many IT professionals, especially web developers have often pondered. The thing is, you need to find something that it makes sense to reproduce. The failure of milliondollarhomepage.bb is an example of a concept that isn’t scalable. Also, with something like facebook or hi5, that is ALREADY easily searchable by region, there is no need for a region specific version.
I agree. Scalability is important. I’ve been debating with a few industry colleagues about what makes sense and what doesn’t.
They are some who think that it makes no sense for a Caribbean tech entrepreneur to focus only on regional projects because they won’t make money now, not with internet penetration not being where one needs it to be to be financially viable.
And there are others who think that the local and regional void must be filled and are willing to wait the 3-5 years they think it will take to rake in the millions.
I think people interested in going in this direction, have to ask themselves..am i doing this expecting it to make money..or am i doing it primarily to acquired/bought out.
From what I’ve seen, most folks do clones expecting a quick buyout. If it’s Caribbean centric…a strong case would have to be made about the market to make it enticing enough for a buyout.
If I’m a Grace Kennedy, how much of a penetration do i need to see within a market before i can justify buying out the market leader?