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Consumer product businesses compared to tech businesses are inferior in two major ways. 1. Lawyers. Trademark, copyright, and patent infringement happens continuously to successful consumer product companies. To enforce your competitive advantages you must pay a lawyer.
2. Inventory. If you run a tech business, you have no idea how complicated this stuff is. It adds two orders of magnitude of difficulty to everything. Today’s successful consumer product cos also have to have a high level of tech mastery to succeed. It’s brutal.
If you’re thinking about starting a consumer product company or a tech company, unless you have a STRONG predilection towards hardware or an amazing consumer product idea, skip it and go straight to tech. You’ll have a better life and make more money.
Finally, I hate to say this but it’s just true. If you’re a tech company in America you don’t have to compete against China inc. (at least not yet...). In consumer products, you do and you will likely be completely outmatched. gL HD
I agree with this, but one area that has me wondering if physical product could be better is where: 1) The product has subscriptions 2) Everyone wants American Made products (eg consumables)
Yeah, I definitely agree that there are all sorts of things that can make a physical products business better. Iphone + app store for example. Agree with what you said about 1 and 2. Throw also really big products into the mix (can't ship from China).
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