Unrepeatable advantage is what makes your startup incomparable for VC
Stop calling it "unfair"!
Since Substack is on the warpath with Twitter, I'm going to try the short-form format. But first, I'll put them together in the usual article.
There are 7 simple theses about such an important characteristic of a startup as "unfair" unique advantage over competitors.
"Unfair" advantage is one of the moats a startup uses to defend itself against competitors. It's probably the last frontier that keeps you from getting caught up.
Many people don't like the epithet "unfair" - it sounds like something a bit embarrassing, illegal. It's more correct to call such an advantage "unrepeatable". This means that with any "conditionally unlimited" resources, it is impossible to repeat such an advantage, to level it.
A startup's "unrepeatable" advantage may be innate (e.g. the connections of its founders) or acquired (an exclusive license from a key supplier).
There is a chasm between "unrepeatable" and "hard-to-repeat" advantages. To overcome the second, you need "only" resources. And if you have found an interesting market - it means that in the near future it will be well financed. The probability of a competitor with resources many times greater than yours is very high.
Sometimes the starting time is also an “unrepeatable” advantage. But time itself is not important. What is important is the distance you will get away from your competitors. The question of shortening the distance is a question of speed, which should be higher than yours. "Second" always goes faster than "First", especially if he has "conditionally unlimited" resources (money).
The "unrepeatable" advantage is not only distance from catching up, but often an advantage over "catching up": such advantages should be sought in obsolete archaic systems that supply a familiar way of job to be done.
The "unrepeatable" advantage is precisely that of the moat. When, it would seem, there it is a fortress, but it is impossible to overcome the last obstacle.
Some examples of "unrepeatable advantages" in well-known companies
Tesla: Proprietary battery technology and a robust Supercharger network give Tesla a significant edge in the electric vehicle market.
Airbnb: The brand has become synonymous with vacation rentals, and their extensive global inventory of unique properties attracts both hosts and guests, creating a powerful network effect.
Uber: Early market entry and aggressive expansion allowed Uber to dominate the ride-sharing industry, providing it with a vast user base and an extensive driver network.
Amazon: Efficient supply chain management, coupled with a vast inventory and strong logistics network, enables Amazon to offer low prices and fast delivery times, which are hard for competitors to match.
Google: Advanced search algorithms and a strong brand identity have made Google the go-to search engine for the majority of internet users. This network effect has cemented its position in the market, making it difficult for competitors to gain significant market share.
Facebook: As one of the first social media platforms, Facebook has a massive user base and strong network effect, making it the primary social network for many users. Its ability to acquire and integrate other platforms, such as Instagram and WhatsApp, further solidifies its dominance.
Spotify: Exclusive deals with music labels and a vast library of music give Spotify an edge in the music streaming market, while its personalized recommendation algorithm helps users discover new content and artists.
Netflix: Proprietary algorithms for content recommendation and a strong focus on producing exclusive, high-quality content have helped Netflix stand out from competitors in the crowded streaming market.
Slack: Integrations with a wide range of productivity and project management tools make Slack the go-to choice for many teams, creating a sticky product that's difficult for users to abandon.
TransferWise (now Wise): By offering lower fees and better exchange rates than traditional banks, TransferWise has created a strong value proposition that is difficult for competitors to match. The company's transparent pricing model and focus on user experience further differentiate it from competitors.
P.S. Not everyone is destined to be born into a royal family. Build airports first. No one needs a second airport, and no one needs a second king!