Software Social

Competitive Advantage and Moats for Small SaaSes, Part 2

Oct 18, 2022
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ADVICE

Exploit Small-Company Cost Advantages

  • Use your small-company cost structure to undercut larger competitors when possible.
  • Keep teams autonomous as you scale to preserve that cost advantage.
INSIGHT

Time Is A Hidden Cost Advantage

  • Time spent in meetings and slow decision-making is a real cost incumbents pay.
  • Speed and decisiveness can be as important as lower payroll or real-estate costs.
INSIGHT

Size Advantage — Use Platforms, Don't Fight Them

  • Size creates advantages (infrastructure, distribution) that are often unreachable for indies.
  • But startups can leverage those big platforms (AWS, Google) instead of trying to beat them head-on.
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