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November 10, 2006

FishBowl Brings Email Marketing to Restaurants

posted by MR WAVETHEORY at 11/10/2006 04:58:00 AM
This is a neat article about FishBowl, a company doing email marketing for restaurants. The market size may be small, but it looks like an interesting owner owned business. The profile says they do about $5 million a year and judging from the website it looks like there is a professional services component. The client list looks interesting: Maggiano's Little Italy and Dairy Queen. Is it a good business? Yes.

Is it a good venture business? Probably not. The challenge is that as clients get bigger, they will take these services in house. Without a strong software component, it will be hard to scale, since clients seem to want personalized campaigns as shown in the case studies for Famous Dave's, Maggiano's and Dairy Queen.

The moral of the story is that good businesses don't necessarily need venture capital, and all good businesses aren't necessarily good venture businesses.

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