Founders: Don’t get stuck trying to invent. Follow this success mantra
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Many aspiring entrepreneurs get
Many aspiring entrepreneurs get stuck trying to invent a new product to sell.
It’s a trap.
99.9% of successful businesses sell an established product in a new way.
“But if I sell something other people are selling I’ll have competition!”
My response:
It worked. As we
It worked. As we saw initial traction we reinvested all our profits into online growth.
6 years later we sell more drinkware units on Amazon than anyone in the world.
Our success with e-commerce created future opportunities with partners like Target, Walmart, and Sam’s Club.
Competition always comes with
Competition always comes with demand.
If you’re launching a product that has no competition there are only two possible reasons:
1. There is great demand and fortunately you were the first person on earth to tap into it (unlikely)
2. There is not much demand for that product
The companies that were
The companies that were leading the insulated stainless steel drinkware market had initially found success in specialty retail (places like REI). Their success in these venues had shaped their retail pricing and margin structure.
They had higher retail prices and few variations.
The most successful companies
The most successful companies in the world are selling an improved derivative of an already successful product:
Netflix -> Video + Streaming
Tesla -> Cars + Electric Power
Apple ->Phones + Apps & Internet
You don’t have to reinvent the wheel.
We saw these opportunities:Products
We saw these opportunities:
Products built for physical retail and not e-commerce
Underutilization of Amazon
We had extensive experience selling online so we believed we could successfully compete in that white space.
We launched with lots of color and size variations.
You do need a
You do need a different strategy than your competition.
Use this process:
1. Find a product that has robust demand
2. Examine the strategies and strengths of the existing companies
3. Find white space
Ask: Where do your skills and abilities line up with white space?
When we launched Simple
When we launched Simple Modern there were established competitors everywhere. These companies were well run. I didn’t see any way we could beat them at their own game.
So instead we considered what strategies they weren’t pursuing.
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