I’ve been reflecting on how different it is to start a company in 2004 vs. 1993. While I still break out like a nervous teenager, which looks awfully strange with graying hair, at a professional level, there are three substantial cost differences that make it much easier to start a business on much less capital. I think this is a great trend for entrepreneurs and has a not-so-clear impact on the venture business.
- Cost Difference #1. The tools to develop software cost nothing now.
- Cost Difference #2. Hardware costs are approaching 0.
- Cost Difference #3. Start-ups have access to global labor.
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