Even though most people have a hard time explaining what Web 2.0 is, more people than ever are launching Web 2.0 companies daily. If you’re not cautious though, things may not turn out as you expect. Here are a few things to keep in mind as you launch that company whose name we probably won’t be able to pronounce.

You need to have a viable business model. A great concept doesn’t mean much if it isn’t viable. Don’t just jump on the bandwagon. We have enough me-too companies. Know your audience and pay attention to marketing. Free is good but not always the best option. Make sure the people are ready for your service. If it is too revolutionary, i.e. ahead of its time, it may not succeed. Make sure the need you are addressing is sufficiently large.

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For more tips on launching a successful Web 2.0 company, check out our previous coverage.