StartUp Tip #12: Create a monopoly

corner_the_market

Don’t seek to compete.

Don’t set up your startup to compete with other businesses, set it up in such a way that it is the only one in its category.

When you launch a new product or service, the first question to ask yourself is not “How is this new product better than the competition?” but “First what?”

In other words, what category is this new product first in?

What new category is your business/offerings creating?

The best way to create a monopoly is to create a new category and dominate it using your first mover advantage.

There are many different ways to be first.

Dell got into the crowded personal computer category by being the first [new category] to sell computers by phone.

Apple was the first to introduce the iPod, iPads.

Kulula.com introduced the low-cost flight carrier in South Africa

Multi choice [through MNET] was the first private subscription TV service in South Africa

This goes against the traditional marketing mentality of being brand oriented of how do I get people to prefer my brand?

Forget the brand. Think category.

Potential customers are tired of having to choose between different but similar brands.

Most potential customers are interested in what’s new, very few are interested in what’s better.

When you are the first in a new category, promote the category. In essence, you have no competition.

Escaping competition and creating your own category will give you a monopoly.

The more you compete with others, the less profits you make because you share the market with your competitors.

Creating a monopoly means sustainable profits for the creator because you are in that category by yourself, at least for now because people will always copy and replicate your business.

Don’t be the first and different for the sake of it, be the first and different because it is better.

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About Roche Mamabolo

Entrepreneur, Author, Dad. Passionate about Innovation and Creativity, Books, Poetry, Traveling, Theatre, Art, Music.
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One Response to StartUp Tip #12: Create a monopoly

  1. kurhulayd says:

    Dear Mr. Mamabolo

    I am humbled and inspired by your words.

    You gave me motivation to push my idea of opening my Young Investors Play-ground( School like environment) But with fun learning tools.

    Kind Regards

    Thapelo Stephen Rampai

    Facebook : Thapelo Stephen Rampai Twitter : @thapelo_rampai Email : thapelo.rampai26@gmail.com Call : 076 5457 202

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