The magic formula: a founder with
1) an unfair advantage
2) in a strong market
3) with compounding benefits
1/ Create an unfair advantage. I think of these as mostly in either the Differentiation or Distribution buckets.
Differentiation is about product. It can be:
* A deep understanding of a niche market from experience in it
* Pace: the ability individually or as a team to ship high quality + quickly
* Combining multiple areas of competency to create a world class intersection
Distribution is about reaching and convincing customers. Can be:
* An audience that trusts you and wants you to win
* Authority and brand within a space
* Expert knowledge of certain growth strategies
* World class sales competency
2/ In a Strong Market is one with demand, momentum, and growth but is best when it's slightly a secret because:
* demand is orthogonal or non-obvious
* customers are overlooked/unsexy
* you get in early
* everyone thinks it's been tested and failed
3/ Compounding benefits means your unfair advantages get stronger over time and it comes in many forms like
* Become the default brand in a niche space
* Built-in product virality
* Promulgate best practices across users
* Economies of scale
* And many more...
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