Founder Eric Ryan targets categories where competitors make products unnecessarily complex or take themselves too seriously. He views this as a sign of insecurity hiding a lack of real innovation. His strategy is to simplify the product and bring a playful, more human approach to the branding.
Marketers often mistake strategic positioning (finding a niche) for true category creation. A new category introduces a solution to a problem customers haven't yet articulated, requiring education on why they need a thing they've never bought before.
Large companies often focus R&D on high-ticket items, neglecting smaller accessory categories. This creates a market gap for focused startups to innovate and solve specific problems that bigger players overlook, allowing them to build a defensible niche.
Startups often fail to displace incumbents because they become successful 'point solutions' and get acquired. The harder path to a much larger outcome is to build the entire integrated stack from the start, but initially serve a simpler, down-market customer segment before moving up.
Startups often fail by making a slightly better version of an incumbent's product. This is a losing strategy because the incumbent can easily adapt. The key is to build something so fundamentally different in structure that competitors have a very hard time copying it, ensuring a durable advantage.
Bootstrappers lack the capital and time to establish a new market category. A better strategy is to anchor your product in a known category (e.g., "site audit tool") and then use your unique features (e.g., "that also fixes the issues") as a key differentiator.
Radical innovation can be riskier than incremental improvement. Founder Eric Ryan shares a failure where a 10x concentrated laundry detergent was *too* novel; consumers, trained to see value in large jugs, couldn't believe the small bottle would be effective. He has failed more by being too novel than too familiar.
A competitor may have a "better" product on paper, but buyers' demand is nuanced. A founder can win a deal against a well-funded rival by discovering the buyer's primary need is industry expertise, not more features. By aligning with this deeper "pull," the competitor's strengths become irrelevant.
Eric Ryan's playbook involves identifying large, established product categories where all competitors look the same. He then capitalizes on a cultural trend the category has missed, like applying personal care aesthetics to home cleaning, creating immediate differentiation and a clear business opportunity.
Contrary to popular belief, simple isn't always better. On Running's CPO argues that overly simple products give consumers fewer opportunities to explore, learn, and feel like an expert. A degree of complexity allows users to "give it its own life," which can be a more powerful driver of adoption than a streamlined experience.
Many founders fail not from a lack of market opportunity, but from trying to serve too many customer types with too many offerings. This creates overwhelming complexity in marketing, sales, and product. Picking a narrow niche simplifies operations and creates a clearer path to traction and profitability.