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Submitted by Ole Ruch on
Don't think you understand Airbnb very well, it has little or no impact on the traditional hotel industry and unlike what is portrayed in the media, it does not disrupt the hotel industry. You need to understand the business model well, and not just read the media articles which are sponsored by Airbnb themselves. Airbnb caters mainly to back-packers and cash strapped students, who are willing to share a room with a stranger, and is not attractive to your everyday hotel guest. It would be useful to wannabe entrepreneurs to understand why you failed in you previous business. Did you try to copy-cat a business because everyone else was doing it, without really understanding the market or its profitability, or did you just miscalculate your model? Remember what you learn in expensive business schools, if its "easiest, cheapest, and quickest to execute", then you are exposed to Michael Poter's 5 forces - so you were bound to fail from the start. Trekurious, will not succeed either. It is a low volume, low margin business and will take a long time to generate a profits, if it ever does. I am not trying to be pessimistic, but you need to revisit your model and do a sensitivity analysis with your revenue drivers. You will always struggle with your cost of sales, and although the business is low volume niche product, you will still need significant sales and marketing spend. What is important to highlight, is that ICT is a platform to execute a business and not the Mida's touch that everyone misjudge it to be. While it is easy to start an e-business it is more important to stress-test your business and innovative ideas against the market - your customers, the demand for the product/service, the cost base etc. If you disregard basic business fundamentals, you will fail just like many thousands of failed start-up that we never hear about. At least, you will be a well know failure!