Barriers to entry, startup costs, how the web eliminates startup costs
Cleverness, and free web tools are what reduces barriers to entry (startup costs). The analog in real life however is totally different.
A great example of a real life barrier to entry being lowered and turning out to be game changing is happening to some friends of mine.
They wanted to drive race cars.
Race cars are expensive, and the safety gear involved, prohibitively so.
A great, great man, Jay Lamm and his associates has created a race that’s perfect for lowering that great barrier to entry.
First of all, it’s a race for cars costing LESS than $500. Yes, that’s right, morons on parade at “race speed” on real tracks (no ovals, actual “road courses”).
What?! You say ? Why would fully capable, able to use their own body parts humans participate in this sort of event?
Well, for some it’s a very low cost way to participate in something they’ve never had an opportunity to do otherwise. Additionally, there are a bunch of safety concerns involved so that the humans participating will only be covered in bruises of their own creation (mainly due to likely cheaping out on getting a real race seat).
The safety costs are “unlimited” while a full fire suit and helmet are required for racing (along with fireproof underwear, socks, shoes, headsocks, and gloves).
The best part is that Jay has gone out of his way to secure low cost (and high performance) driver safety gear kits so that newbies can save over $300 on good gear.
Now you’re asking yourself,, “Self, why is this lowering a barrier to entry?”
A simple, fun sport, previously out of reach for mere mortals without trust funds, personal fund managers, and their own helicopters, now can be participated in by normal humans, with 8-5 jobs, wives and husbands. More than that, once said humans have said safety gear (the main barrier to entry) they say things to themselves like, “gee, you know I have a race suit and helmet, I bet there are other places I could go and race!”
Now realize that Jay is doing this on 6 courses across America this year! Each race has around 40 entrants. Each team has at least 4 and up to 6 drivers. Some quick math says, that if half the teams participating are new racers, then this year, Jay will have created (5*20*6=500) 500 new race car drivers likely to participate in other racing events at another point in the year. Think of what this has done for Jay, his business, and the business of auto racing. Who in that industry isn’t going to bend over backwards to help him, when he is able to nearly Guarantee he’s creating more business each year for anyone in the racing business?!
When was the last time you went out of your way to lower a barrier to entry in your given field?
