It’s the classic Silicon Valley narrative: two young, talented dudes who like to party get an idea. They start a dotcom. It languishes for a bit until an investor sees the potential. And then it gets huge. The young, talented and suddenly quite rich dudes continue to party into retirement.

Introducing: Yelp
Yelp is a web network that compiles user-generated reviews of local hot spots, including bars, restaurants, financial institutions, and retail shops. Yelp is currently available to residents of a dozen or so big cities across the country, but judging by its current popularity, one can expect its reach to broaden.

Why it’s cool
According to a recent profile of the company in Fortune Magazine, a positive review on Yelp can be a huge boon for a small business that’s otherwise struggling to get known. Consider the example of a San Francisco hairstylist Christopher Hill: after getting some good press on Yelp, Hill, owner of Splitends salon, got such an infusion of business that he had to soak his tired hands in ice at the end of each day.

Yelping the Little Guy
If you’re a small fry trying to compete with the giants, Yelp may be your best friend. From Fortune’s article on the company:

Why do you frequent Starbucks when you’re traveling? Do your really love the coffee, of do you go because you know what you’ll get when you walk through the front door? As Simmons [co-founder of Yelp] puts it, “A brand is a proxy for knowledge.” What if you found out there was a wonderful little café down the street? Would you still go to Starbucks? Maybe, maybe not.

Yelp is all about aggregating local knowledge: the hidden gems, the helpful staff, the funky décor, the unique vibe, the colorful barkeep and, just maybe, the exceptional insurance agent.

Check it out: Yelp.com