In this episode, Immad Akhund, the co-founder and CEO of Mercury, shares his insights on competing in a market filled with incumbents.
He discusses the concept of a ‘minimum delightful product’, the importance of understanding unit economics early on, and the value of focusing on a specific customer base.
The Concept of Minimum Delightful Product
When entering a market with established incumbents, it’s crucial to aim for a ‘minimum delightful product’.
This means not only matching the existing services but also being ten times better.
This approach ensures the product is robust enough to compete effectively, offering a range of services that exceed customer expectations.
Targeting a Large Total Addressable Market
Targeting a market with a large Total Addressable Market (TAM) provides more room for maneuvering and flexibility in figuring out the Go-To-Market (GTM) strategy.
As the strategies that work at the beginning of a business may not work when the company scales, having a large TAM allows for more flexibility.
Raising Significant Funds Early On
For businesses that require significant resources to operate, such as fintech startups that need bank partnerships, raising significant funds early on is crucial.
Doing projections, even in the early stages, can help in planning and ensuring the business’s sustainability.
I prefer minimum delightful product. That minimum is just way higher than in a new market that doesn’t exist. – Immad Akhund
