My buddy Allen Stern (of CenterNetworks) said something recently in a podcast that I liked and is relevant here. Paraphrasing, he said something like, "In New York City there are a thousand pizza places and new ones opening up all the time. Many of them are successful and some of the new ones will be, too." Or, in other words, there is always room for new startups that do the same thing. Just do it better or differen…
It's very misleading to compare pizza places to web businesses. Every new pizza shop adds tangible value to the system. It has a physical presence and sells a physical good that fulfills a basic need. A web shop, without marketing, adds basically zero value to the system. It's not like you can "walk by" and discover that it provides something. And I don't think any pizza shop bootstrapped its business by offering piz…
Plus, a brick-and-mortar store owner has higher fixed costs.