Codie Sanchez argues the Internet created a massive gap between top and bottom companies by making it easier to copy, compete globally, and commoditize everything. Founders now have to obsess over scalable strategy and profit or get trapped in a race to the bottom.
Before you start a business, it's important to know something. The winners and losers phenomenon since the 1950s. If you look at the top quartile, the percentage of businesses that win that actually make money, versus the bottom quartile, the amount of businesses that don't make money, what do you see? There's a huge fucking gap. I think the big reason why there's a huge difference between the two is in the 1950s, there was not the Internet.
Something magical happened right here. The Internet got invented. You're competing with the entire global elite. And that's the big difference between these top quartile companies and bottom quartile companies.
I also think it's the big difference between when you start a company, you used to have a really long Runway until your competitor would come and figure it out. Now the best companies to make the most money are Internet companies. And the next person who comes along just copies your idea. And the railroad already exists because the Internet's created frames for websites, 99 designs for graphics and logos. So you have to obsess on your strategy to scale with the right amount of profit. Otherwise you're going to become just like everybody else, which is a race to the bottom, right?
