How do I know if my idea is different enough from competitors?
Answered by Unleash Your Ideas.
Different (marketing language)
- Novel for the sake of novel
- Hard to explain
- Nobody asked for it
- Impresses you, not the buyer
Relevant (the real variable)
- The better choice for one person
- Fits a specific situation
- Easy to say yes to
- Coca-Cola vs Pepsi, not new vs old
Answer
It doesn't need to be different. It needs to be more relevant to a specific person than the alternatives. Coca-Cola is not different from Pepsi. It's more relevant to a specific taste. Different is marketing language; relevant is the actual variable.
Quick Facts
Building something without a clearly relevant market need is the number one cause of startup failure, at about 42% of post-mortems, which is a relevance problem more than a novelty problem.
Source: CB Insights
Fast followers who were more relevant rather than more novel failed only about 8% of the time, compared with roughly 47% for true first-movers.
Source: Golder & Tellis (1993)
About half of new businesses survive to five years, and the survivors tend to be the ones a specific customer keeps choosing, not the most different ones.
Source: U.S. BLS Business Employment Dynamics
Questions For You
Finish this sentence: "For [very specific person] in [specific situation], I am the better choice because [specific reason]."
Are you trying to be different from competitors, or more relevant to one particular buyer? Which one actually wins the sale?
What would make one specific customer say "this is clearly for me" the moment they see your offer?
A Word of Inspiration
If you are stuck trying to be different enough, you can relax, because different was never the goal. Being the obviously right choice for one specific person beats being novel every time, and it is a much easier bar to clear. Get relevant to someone real, and difference stops mattering.
Try this today
Write one sentence: "For [very specific person] who [specific situation], I am the better choice because [specific reason]."
Sources & Citations
- CB Insights, The Top Reasons Startups Fail (analysis of startup post-mortems)
- Golder & Tellis (1993), Pioneer Advantage: Marketing Logic or Marketing Legend?, Journal of Marketing Research (summarized by UCLA Anderson Review)
- U.S. Bureau of Labor Statistics, Business Employment Dynamics (survival of private-sector establishments by opening year)
This resource is educational and does not constitute legal, tax, or financial advice. Consult qualified professionals for decisions specific to your situation.
More questions in Finding an Idea
How do I know if I even have a good business idea?
You don't.
Do I have to have a passion for what I do?
No.
What if I don't have any ideas at all?
Then you haven't been paying attention to your own friction.
Should I start a business in an industry I know or one I'm curious about?
Industry you know.
Is it too late to enter my industry?
Almost never.
Should I copy an existing successful business?
Yes, with modifications.