Re:Ask HN: Someone has already launched with the same idea. ...
by webmaven on Tuesday May 25, 2021 @03:41PM
(#27281565)
> My question is then: Should I still pursue this startup idea?
No reason not to, unless you have reason to believe this is a market with such strong network effects that a pile of VC cash is the only way to play a winner-take-all game.
> I do think that this will be a large, growing market, but at the moment I have no specific ideas that would differentiate me from the existing company.
Well, that's a bit more of a problem, you need to differentiate somehow, whether by pricing model, distribution, targeted customer segment, etc., but you can use a fast-follower strategy to copy the things they've done that work (and would work for you) so your efforts are more focused.
As a last resort, you can differentiate with branding and your Unique Selling Proposition (eg. otherwise highly similar products like toothpaste can be positioned as 'freshens breath', 'fights cavities', or 'whitens teeth').
The easiest trap to fall into is "like X, but cheaper", unless you have some real way of maintaining a pricing edge (eg. a simpler self-serve product, with less need for customer support), structural reasons for lower CAC (eg. targeting small business instead of 'enterprise' customers), etc.
No reason not to, unless you have reason to believe this is a market with such strong network effects that a pile of VC cash is the only way to play a winner-take-all game.
> I do think that this will be a large, growing market, but at the moment I have no specific ideas that would differentiate me from the existing company.
Well, that's a bit more of a problem, you need to differentiate somehow, whether by pricing model, distribution, targeted customer segment, etc., but you can use a fast-follower strategy to copy the things they've done that work (and would work for you) so your efforts are more focused.
As a last resort, you can differentiate with branding and your Unique Selling Proposition (eg. otherwise highly similar products like toothpaste can be positioned as 'freshens breath', 'fights cavities', or 'whitens teeth').
The easiest trap to fall into is "like X, but cheaper", unless you have some real way of maintaining a pricing edge (eg. a simpler self-serve product, with less need for customer support), structural reasons for lower CAC (eg. targeting small business instead of 'enterprise' customers), etc.