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Many startups fail because they try to emulate successful startups right from the beginning, without considering their own unique position and the needs of their initial customers. Startups should focus on acquiring their first customers, even if their product or service is not significantly better than existing options. Successful startups like Airbnb and Uber started with basic and imperfect offerings but targeted underserved pockets of demand, such as major sports events or hotels with full occupancy. These early customers provide valuable insights, act as brand advocates, and can even contribute to R&D efforts.