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Avoid the Hamster Wheel of Mediocrity
Finding micro-inefficiencies in the market may lead to short-term gains, but these opportunities quickly vanish as competition grows. The landscape of e-commerce has shifted from easy entry to a highly competitive arena, emphasizing the need for sustainable competitive advantages, or 'moats.' If one cannot identify strong moats before starting, it’s wiser not to proceed, as the risk of becoming trapped in a cycle of effort without value creation is high. Operators must be wary of pursuing ventures that appear to have traction but ultimately do not promise significant enterprise value, leading to wasted time and resources.