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HBR On Strategy

The Strategy Mistake Too Many Startups Make

Oct 25, 2023
24:39
Snipd AI
Learn how startups can avoid the strategy mistake of copying successful companies, and instead focus on finding underserved customers and working with early adopters. Hear examples from Uber, Airbnb, and Netflix. Discover the importance of operational excellence and unconventional customer acquisition methods in the early days of a startup. Explore how Airbnb targeted early adopters and used limited technology. Understand the role of technology in startups and the importance of identifying the right product and acquiring customers.
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Quick takeaways

  • Startups should focus on acquiring their first customers, even if their product or service is not significantly better than existing options.
  • Early customers play a vital role in providing feedback, creating word-of-mouth buzz, and offering invaluable insights for product development.

Deep dives

Acquiring Early Customers and Emulating Successful Startups

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.

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