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Our job at Assembler Labs is to work with great founders at the idea stage to validate and spin-out cos that can reach product-market fit quickly.
Every couple of months, an idea comes up against a new competitor. Here's how we think about that.
Every couple of months, an idea comes up against a new competitor. Here's how we think about that.
More often than not, it feels like the competitor is ahead of us in some way:
* product is more complete
* design is better
* launched before us
* raised more money
* some really compelling customers, whatever.
That's usually all we can focus on.
* product is more complete
* design is better
* launched before us
* raised more money
* some really compelling customers, whatever.
That's usually all we can focus on.
Logically, we know that competition is usually a good thing: a competitor means we're not wholly crazy... there REALLY IS a market here.
And we try to tell our founders that.
And we try to tell our founders that.
But emotionally, in the moment, it's always — ALWAYS — a gut punch. So what do we do about it?
First things first, there are two questions we ask ourselves:
1) Is this a huge market?
2) Have they won it already?
1) Is this a huge market?
2) Have they won it already?
Considering we attempt to play only in huge markets, the answer to (1) is always yes.
And considering we're just hearing about this competitor, the answer to (2) is almost always no.
And considering we're just hearing about this competitor, the answer to (2) is almost always no.
Right then and there, we take a step back.
The important part is to remember that the First to Scale is what matters the most.
First to Launch, First to Raise, First to Revenue... none of that matters in the long run. But First to Scale matters a lot.
The important part is to remember that the First to Scale is what matters the most.
First to Launch, First to Raise, First to Revenue... none of that matters in the long run. But First to Scale matters a lot.
First to Scale matters so much because of the Winner Take Most dynamics that exist in software markets.
This is one of the things for which people made fun of Jeff Bezos the most early-on: his insistence on Get Big Fast.
But he was, as usual, right.
It's paying off like crazy right now for Amazon.
But he was, as usual, right.
It's paying off like crazy right now for Amazon.
That means we must decide, given this new information, what will get us to be First to Scale.
Sometimes we learn we are behind, product-wise, by a few months... maybe even a year.
Other times we find out they have a unique distribution channel we'll never have access to.
Sometimes we learn we are behind, product-wise, by a few months... maybe even a year.
Other times we find out they have a unique distribution channel we'll never have access to.
Whatever the case may be, now that we know where they've zigged, we need to figure out where to zag.
Meaning we must find the way to success and scale faster than them.
They have a strength, but so do we. They have a weakness, and let's exploit that.
Meaning we must find the way to success and scale faster than them.
They have a strength, but so do we. They have a weakness, and let's exploit that.
Practically speaking, this means leaning heavily on the work we've done to understand the market and its customers. We drill into the problem very, very deeply.
We cut out ALL the noise and focus on the most important thing to solve for customers. NOW.
We cut out ALL the noise and focus on the most important thing to solve for customers. NOW.
The best description I've heard of this is the "red hot center." (I can't remember who said this, but a podcast with @sarahtavel from Benchmark sticks in my head. Am I right?)
You have to find the single, core insight that matters the most — and attack it vigorously. For most of our businesses, this comes in one of two flavors: product, or distribution.
It means we have to build an extremely narrow, but deep product that solves the most painful pain (at the exclusion of EVERYTHING else). Even if this isn't unique, it provides speed.
Or build a unique and differentiated distribution channel where the pain exists the most.
Or build a unique and differentiated distribution channel where the pain exists the most.
Sometimes, though, it simply means raising money earlier than you otherwise would have.
Or, perhaps, burning faster to pick up an extra hire.
Or trying to suck the oxygen out of the market by coming out loudly on social and press and building the brand.
Or, perhaps, burning faster to pick up an extra hire.
Or trying to suck the oxygen out of the market by coming out loudly on social and press and building the brand.
And every so often, when all else fails, it simply means: GO FASTER.
If roadmaps are identical, cash is identical, distribution is identical... the best way to win is to simply pick up your speed. Work harder. Work faster. Work more.
If roadmaps are identical, cash is identical, distribution is identical... the best way to win is to simply pick up your speed. Work harder. Work faster. Work more.
And then, critically, it means a renewed sense of urgency.
Reality must be distorted, even just a tiny little bit. The race is on to get to scale faster.
Which means finding the "red hot center" of the problem, reaching PMF faster, and then investing heavily into growth.
Reality must be distorted, even just a tiny little bit. The race is on to get to scale faster.
Which means finding the "red hot center" of the problem, reaching PMF faster, and then investing heavily into growth.
At the end of the day, dealing with competition at the earliest stage is about:
0. Receiving the punch.
1. Realizing it's a net-good thing.
2. Being laser focused on the "red hot center" of what matters for your business.
3. Attacking it faster than them and getting to scale.
0. Receiving the punch.
1. Realizing it's a net-good thing.
2. Being laser focused on the "red hot center" of what matters for your business.
3. Attacking it faster than them and getting to scale.
