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Forbes Technology Council
Successful CIOs, CTOs & executives from Forbes Technology Council offer firsthand insights on tech & business.
As a startup, the tech industry is one of the hardest to break into. The market is overflowing with hopeful entrepreneurs aiming to be the next big thing, but if you’re offering the same solutions to the same customers as everyone else, you won’t last very long.
The good news is that there’s always room for new startups that know how to carve out a niche and differentiate themselves from their competitors. We asked members of Forbes Technology Council to offer their advice for tech startups that are just getting started in the industry. Here are their best answers:
1. Make Sure Your Product Is Something You Would Use
Would you use your product or service on a regular basis? If not, your users probably won’t either. No matter how great the idea sounds, you need people using it. If you are a regular user, so many things become easier: highlighting the best features in marketing materials, getting ideas for improvement, creating motivation to work, etc. – Matthew Kolb, Class Finders
2. Educate Your Target Market With A Clear, Simple Message
The more competitive the industry, the more options your target market will have, and therefore the more information they’ll have to review on each option to choose a vendor. In such situations, all else being equal, prospects will gravitate toward the vendor that makes things clearer and easier. So, clarify, simplify and educate, and you’ll win their attention, trust and, ultimately, business. – Simon Smith, BenchSci
3. Reconsider Whether You Should Enter A Highly Competitive Market
I’d say go find something else that hasn’t been done rather than to enter a competitive environment. Build out something that hasn’t been done before. You’ll get noticed faster and most likely attract a much larger audience from the beginning rather than fight against the existing forces. – Chalmers Brown, Due
4. Find Your Unfair Advantage Over Your Bigger Competitors
When a startup enters into a competitive industry, the cards are stacked against them. They might not be able to match the resources or the experience of the incumbents. So the startups better have an unfair advantage in their favor. It can either be a completely new business model (Uber, Airbnb, Dollar Shave Club), technology (Google in early days, SpaceX, Tesla) or user experience (Nest). – Anand Prakash, GrailAI
5. Make Your Unit Economics Work
For those coming from big companies, particularly in Silicon Valley, it’s easy to overemphasize the value of product and user experience and undervalue getting to profitability. While this worked for Instagram, it hasn’t worked for Twitter or the 90% of startups that continue to fail. Unless you’re hoping to get lucky, make a product that has solid unit economics baked in early. – David Murray, Doctor.com
6. Get The Startup Basics Right
A startup in a competitive industry has to be able to demonstrate the ability to create a brand, show ability to scale in a short time, have the team to execute and focus on winning customers. – Naresh Soni, Tsunami ARVR