markbrown wrote:
That all sounds great and reads well but that is not what the readers of this thread want to know, they know all of that already.
How does one do it?
How does one take it to the next level?
Mark
I am sorry to say it, but without the skills and/or capital to go big, it will likely fail, no matter how much your heart is in it. Here's why ...
With several other industries the small guy can still work his way to success, but with TEs it is quite different. Take the restaurant industry for example. Obviously a new restaurant (not a chain) would have a really hard time go up against the established chains and therefore would never open a 10,000 square foot restaurant right off the bat. Instead, they would open a smaller more cost feasible operation where they could manage most of it themselves. With really good food and customer service, this little restaurant will start to build a name for itself and can grow over time. You see, the success of the restaurant is based on something the owner can control (food quality and service) and NOT on having huge numbers from the get go. The customers enjoyment and value are not dependent on how many other people are eating at the restaurant
But with a TE, your success is going to be largely determined by how many members you can attract quickly, because an exchange that starts off with just a handful of members and only gets a few new members a day is not a desirable place to advertise and therefore not a desirable exchange to use. It ends up being a catch 22 situation and this is why it likely will fail in the end.
The new exchange owner is going to need to get a lot of people into the exchange in a hurry and this is going to require either the skills to do this (including connections with others that have those skills) and/or some serious capital. Somebody with a few hundred bucks and no skills should really consider doing something else.