A Profitable Auto Dot Com

from the well,-look-at-that dept

While all the other auto dot coms are going out of business, one of them has been profitable since June. The main reason? They couldn’t get any venture capital. I’ve actually heard this in a few other cases as well. Without being able to get venture capital, a number of startups (the ones who really believed in their businesses as opposed to just wanting to get rich quick) redid their business plan to figure out a way to make money without having to rely on any venture capital investments. In other words they learned how to build real businesses that involved taking in real revenue. Too many companies that took venture capital forgot to bother with that aspect of building a business. To them, their “revenue” was the capital investments they brought in.


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Comments on “A Profitable Auto Dot Com”

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1 Comment
Ryan says:

love it

The honesty in this article is just great. I think there should be more people out there like this guy – he’s just saying, “Yeah, that’s what we’ve been doing all along. I don’t know why other people didn’t.” As was mentioned last time the issue of buying cars on line came up, I think people only want to get recommends from a web site. No matter how much they are detested, most customers prefer having human contact with a dealer before buying a car, added to the fact that it is a ‘high-trust’ purchase. By the way,

It’s like a piranha that’s 80 percent teeth and 1 percent body

Where’s the other 19% of this fish?

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