Why you shouldn’t be afraid of a crowded market
About Xo Capital
Xo Capital is a micro private equity company that buys small, profitable SaaS companies.
Why you shouldn’t be afraid of a crowded market
Andrew: “What’s the biggest risk when you start a company? It’s that nobody wants the thing that you built. When building something that already exists and building a variation on that, you don’t have to worry if there’s a crowded market for that. You eliminate market risk.
We’ve eliminated market risk, we’ve eliminated execution risk on the technical side, and there are not a lot of reasons I could think of why an engineering team couldn’t build this – that’s not the case with a rocket to Mars. It’s just about your ability to build a brand in this space.
There will be dissatisfied customers for any given product, like lemlist, which has many users. Finding them and communicating your value proposition is a certified way to start. Now, if you want to build that rocketship, do it later.
I always encourage first-time founders to build a kind of variation, take, or point of view on an existing product. I think that’s a sure way to success than trying to create a new market, which is a pain, it takes a lot of money, and that’s typically the realm of venture capital.
If you’re just a bootstrapped solo founder, you have one or two people. I would encourage you to that viewpoint instead of trying to do something crazy or huge for your first time.
Cristian: “You shared some great value!”
