Sunday, September 22, 2019

"The Founder's Guide to Markets" - Brief Notes




The Founder's Guide to Markets - Erik Torenberg & Anuj Abrol

Brief notes for future reference.

Thiel: dominate an initial niche, then expand
- best suited to monopolistic mkts
- pick an initial niche that you can monopolize
- GTM in that niche with durable assets
- Once in mkt, deliberately expand to adjacent niches

Rabois: target massive markets w/ general, vertically integrated solutions
- best suited to oligopolistic mkts
- target all cust. with gen. solution
- GTM solving for all; build accumulating advantages, watch for anomalies
- Once in mkt, double down on anomalies & capture value

Similarities across frameworks
- Timing: Both frameworks need a compelling answer to ‘why now.’
- Secrets: Compelling ‘why now’ answers need a ‘secret.’
- Assets: Both frameworks promote building assets that make your business more powerful and defensible.
- Solve biggest risks first
- N of 1: unique product-market fit. The product defies typical categorization for its market.

Market types
- Consumption markets: pre-existing and well-known. Demand already exists. These opportunities are well defined and likely to be huge
- Non-consumption markets: There are no pre-existing products nor direct demand.

Items to be aware of
- The Peter Thiel (niche) framework: Going to market is easier as one can get a customer adoption flywheel going with a narrower segment. As hard as Rabois approach. Can take longer. Regardless of outcome, it can be hard to understand why the result occurred

- The Keith Rabois (general) framework: While this approach is riskier, the companies that do succeed will be bigger and better run. The tough parts all deal with execution. This approach also requires much more capital.

Another startup reading list - early-stage pitch decks

Photo by Ramy Kabalan on Unsplash The following resources form the backbone of my understanding of, and thinking about, early-stage ...