Picture this: You’re sitting in a boardroom, palms sweaty, pitching your revolutionary idea. Someone inevitably asks, “But what about first mover advantage? Shouldn’t we rush to market?” Sound familiar?
After 25-30 years in the startup world, I’ve watched countless entrepreneurs chase this golden goose – only to discover it might be fool’s gold. Here’s why the first mover advantage might be more myth than magic.
The Hidden Costs of Being First
Market Education Is Expensive When I helped launch early business management software in the late 90s, we didn’t just sell a product – we had to teach people what “online software” even meant. First movers often burn through marketing budgets educating customers about the entire category, not just their brand. You’re essentially paying to shape consumer behavior from scratch.
Technology Immaturity Hurts Remember 56k modems? Our early product suffered because the infrastructure wasn’t ready. Early solutions are often buggy and incomplete because you’re building without a roadmap. Meanwhile, second movers learn from your mistakes and leapfrog ahead with better products.
Loyalty Isn’t Guaranteed Being first doesn’t create automatic customer loyalty. Your early adopters might stick around, but mainstream customers will jump ship if competitors offer better features, pricing, or user experience.
The Second Mover Advantage
Smart entrepreneurs study first movers’ missteps, analyze customer reviews, and identify unmet needs. They let others pay for market education, then swoop in with superior solutions.
Being first to market doesn’t guarantee success – being best to market does. Sometimes the tortoise really does beat the hare.
About Monday Myth Check
Monday Myth Check is a weekly dose of reality where Jono Brake holds up commonly held leadership beliefs and asks the question “What if this was not true”. You can find the weekly videos and other posts by following Jono Brake on LinkedIn or following The Forged Leader, as well as on Youtube @jonobrake.
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