Why is a new category important?
What is a "category"?
Why are startup people talking about category so much?
Those are all great questions by entrepreneurs aspiring to become great.
WHAT IS A CATEGORY?
- Virtual computing
- Social networking
- Fast casual restaurant
Here are some new categories:
- Sharing economy
- Internet of things
- Big data
- Deep computing
WHY IS CATEGORY IMPORTANT TO STARTUPS?
- Opens the door to all competitors, the fastest to react will be startups.
- No Gorilla (e.g. Facebook) blocking the way.
- Instantly brands your startup different than existing solution (Ride sharing versus Taxi; Uber versus taxis).
- Clear path forward, next to-dos are no longer unknown.
- High growth potential - starts from zero, reaches large numbers of potential customers.
WHY ARE STARTUP PEOPLE TALKING SO MUCH ABOUT CATEGORY?
- First to dominate becomes the Gorilla
- Search = Google
- Ride sharing = Uber
- Attracts great employees - people want to work with the next great thing.
- Gets investors clamoring to put money into your startup.
The radar of serial entrepreneurs is constantly looking for new categories in which to start a new enterprise. Not too early, not too late. They got great by being "first to get it right." First is death - pioneers get arrows in their backs. Same with first mover advantage.
Somehow the veterans of startups sense intuitively a new space forming, shaping up to be the next amazing category. Such people are worth finding and sticking close to. Maybe you are one of them?
BOTTOM LINE: Spotting a new category forming is priceless in startup land. It gives you a chance to begin a fresh enterprise before a Gorilla emerges and ends the race. And be wise about when to launch into the new space. Timing is everything in this competition. When you can do this, it will add a powerful element to your unfair advantage. You will be the envy of your competitors.
I wish you The Best on your Adventure!