π ββοΈ "Build a product in a popular market."
π ββοΈ "Build a product in a market with lots of competitors."
π ββοΈ "Build a copycat when you notice a product doing well."
First, let's get some semantics out of the way.
When I talk about a "market" I'm describing *the sum of demand* for a particular thing:
1) Number of potential customers 2) How much they spend 3) The frequency at which they buy 4) Their willingness to pay
(Hat tip to @alanklement for the concept of "willingness to pay")
I'm not saying everyone should start a coffee shop!
"The point of the metaphor is: donβt do demand-generation. Rather go where demand is built-in; then, it's easier (even when there are competitors)." β @asmartbear
There's a huge misunderstanding here.
When surfers spot an oncoming wave, their ability to ride it depends on how good they are, their position in the water, etc.
The skills, network, timing, and execution of the founding team *do* matter. (But without a wave, they're useless)
"Build it and they will come?" YES!
If the demand is there, and you're the right founder for the job, and you've built a product that meets the demand, and your timing is right, and you've found some good distribution channels, then...
Yes, they *will* come.
It doesn't matter how good of a surfer you are.
π No wave? πββοΈ No surfing.
It doesn't matter how talented of a founder you are.
π No demand? πββοΈ No business.
Another misinterpretation:
"Market with demand" β "Popular" or "easy" market
None of this is easy. Most good opportunities are not obvious (especially to outsiders).
You're looking for evidence of unmet demand in a category that you understand!
If customers already have multiple options (that they're happy with) it's most likely a low-demand opportunity.
This is why bootstrappers probably shouldn't build another to-do app, project management app, etc...
(unless you've truly noticed some untapped demand).
I'm not advocating that anybody go head-to-head with incumbents unless they truly have the ability to do so.
Beginner surfers shouldn't compete with Kelly Slater. But, if you're Italo Ferreira... go for it!
(@docsketch can go after Docusign because Ruben has serious SEO skills)
π You should look for demonstrated demand, but that doesn't mean it will be obvious or easy to spot!
π Most likely, you'll spot opportunities in spaces you're already spending time in.
π Look for folks demonstrating effort (time or money) who haven't found a good solution.
When I use examples of successful companies it's for *context*.
I'm not advising that you go and try to start a similar product in a similar market just because it worked for them! π€¦ββοΈ
These examples are illustrative, not prescriptive!
"What do you think about the CRM/PM/Metrics market?"
It doesn't matter what I think. π
What matters is:
- how have you seen demand demonstrated in that market?
- what gaps exist that nobody else is serving?
- what strengths, skills, and connections do you bring to the table?
β’ β’ β’
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Nothing gives indie founders a better quality of life than recurring revenue. π₯°
The only thing that compares is a one-time sale product (course, book, downloadable software) that does massive revenue when it launches, and then consistent sales in the years that follow.
(Without needing a lot of re-launching, complex sales funnels, or CPC ads)
The risk with one-time sales is you can have a reasonable launch ($10k - $30k) but then have it peter out.
Then, it's like squeezing juice from a squeezed lemon. π
But, if you get a really good launch ($100k - $500k) you have the margin to figure out how to make it sustainable
On Sep 12, 2012, @kylefox sent me a DM that changed my life forever.
It resulted in me changing my career, earning more money, meeting most of my current friends, growing an audience online, and (ultimately) building @TransistorFM.
Kyle asked if I wanted to start a podcast.
I should mention: Kyle and I had only hung out a few times in-person.
I'd recently moved away from Edmonton, and hadn't talked to him in a few months.
If he hadn't taken the initiative to reach out, my life might have turned out a lot different! π
Initially, we thought it'd be a podcast about Product Management (we were both PMs at the time).
But, it quickly became clear that we were both interested in building and launching our own products.