Unique product - an advantage or disadvantage for a startup?

There are two main ways in the business world: to create something new and unique or to copy (and if possible - and surpass) someone else's success. If you were to start a business - which way would you choose? Something tells me that most potential startups are quite romantic, and copying other people's ideas doesn’t attract them very much. Moreover, its original ideas are full of head, already blowing the roof, right?

So, from my own (not very rich, but nonetheless) experience, I can judge: the original idea and a unique product greatly complicate the life of a startup. And that's why:


All the mistakes on your way are yours!

Everyone knows that learning better from the mistakes of others. But where to get them if you are doing something unique, and before you, no one has been involved in this garbage in principle? Stock up on painkiller, band-aid and (alas, the main thing) money - all the bumps and bruises along the way will go to you.
Any at least any high-tech project has a funny feature: every day (or even every hour) you have to make a choice between several possible solutions to a particular problem. As in the well-known “managerial” joke about sorting oranges - time after time, the decision is the decision, and all the responsibility lies with you. Knowledge, experience, erudition, intuition - help, but do not guarantee against the wrong choice. And there is no one to “write off” ... And the consequences can be objectively judged oh how soon.
And the price of almost any of your mistakes can be fatal for a startup - but it will be easier for your followers, yeah.

If this is so cool, then why hasn't anyone done it yet?

Favorite question of potential investors about the unique product you proposed. Well, what will you answer? I’ve been trained many, many times and usually I’m answering something like: “This product is at the junction of several completely independent areas of activity. Specialists in one of these areas simply do not realize that such a product can be made relatively easily. Those experts (from another field) who are aware of this do not see the potential of this market, because think in other categories of goods etc. ” And all this is true (in any case, I sincerely think so). But not the truth. For the truth lies in the answer “but FIG knows him,” which for some reason potential investors really do not like ...

Why are you so cocky?

Oddly enough, but the world of startups is ruled by fashion. It would seem that if everyone was ambitious to invest (for example) in coupon services, then the chances of each individual investor for success fall sharply, because competition is off-scale. But here's what is funny: venture investors, whose area of ​​activity is by definition associated with considerable risk, do not like to take risks much. And if you have a choice - go along the beaten track or pick up a machete and cut your way through the dense jungle - guess what the investor will choose in most cases? So dozens of almost identical services are opened almost simultaneously, and daring upstarts suck their paws with their original ideas.

Race for a leader implies that a leader gets tired first

“We will invest in your idea, and in a month (six months, a year) imitators will replicate it (option for goods:“ the Chinese will steal ”) and we will lose investment!” - so what’s the answer? In 99% of cases, the only advantage of the original startup is the time handicap. Which is often easily recouped, for example, with a large initial investment in a copycat project. “Unique patented technology” - well. “No one else can repeat within a reasonable time” - oh well!

And who will buy it?

Is the product unique? Cool. So, there is no market for him. That's joy, yes (especially from the point of view of the investor)? The market will also have to be built from scratch. Promotion, breaking stereotypes, dumping - everything you have with your unique product is ahead! As one potential investor once told me: “Bring me an agreement of intent with a large wholesaler on the purchase of a large consignment of goods - and I will invest in your project!” - Yeah, any major wholesaler wants to bring a unique new product to the market! Those. to invest in regional advertising, in the dealer network, escort and local service and other expensive goodies, and even with a considerable risk of complete failure - who can estimate the capacity of the currently non-existent market?

And how much?

You are the first on the market! Practically - monopolists! Dream? But there are nuances.
Is the product manufactured abroad? So, at customs you are the first with your unique product, congratulations. Who recognizes customs officers - begins to love traffic cops (Nar.mudr.).
Everyone knows that the larger the party of something, the cheaper it is. And the first batch you have - is it like it will be very big? Well, think for yourself? So, the cost price has been bullied ... And our favorite retailers, for example, for some reason want at least 100% margin. Those. bullied turns out and the retail price. Well, how are the sales?
Sell ​​a service or software? “Why is it so expensive ?!” - they ask you. And to answer “Duc, no more than competitors” will fail - the product is unique. But it turns out so to answer with your followers and imitators.

Add a little more and you can buy ...

The unique product will be compared not with analogues (they are not there), but with competitors from other niches. Those. your eternal companions will be the customer’s phrases “yes, that crap doesn't have even half of your functions, but it’s almost half the price!” and (my favorite) "yes, if I add a little more, I can buy a whole / real / most sophisticated ...".

This is not an exhaustive list, of course. But what’s there, it’s enough to see how investors react to projects like “we are introducing a new unique product” at all kinds of start-up gatherings, and they respond to “we will do it like ... but twice as cheap!”. So if you want to create a successful startup - copy, my advice to you.

PS And if you want to enjoy your work, but see money only on TV - spit on everything that I have said here, and beat your head against the wall. Like me. So far, I have never regretted. “But we have not reached yet!” (C)

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