Chen's Cold Start Theory can be applied to a new business by following its five stages. The first stage, the cold start problem, involves identifying the initial challenges of starting a business. The second stage, the tipping point, is about reaching a point where the business starts to gain momentum. The third stage, escape velocity, is about maintaining that momentum to grow the business. The fourth stage, hitting the ceiling, involves identifying the limits of the business's current model and finding ways to break through. The fifth stage, the moat, is about creating a competitive advantage that makes it difficult for competitors to catch up.
When a networked product launches, it faces a chicken-and-egg problem: people need to use it for it...
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