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.
Founders who have truly 'found' demand can break free from copying other startups' playbooks. They can confidently deploy unique tactics in product or marketing that seem strange to outsiders but perfectly fit their specific, proprietary understanding of customer needs, leading to outsized success.
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.
Founder Jesse Cole's creative engine is a simple rule: identify the standard way of doing things and then do the opposite. This ensures every idea is inherently remarkable and share-worthy, as people don't get excited about normalcy. It’s a core principle for breaking out of industry conventions.
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.
Established industries often operate like cartels with unwritten rules, such as avoiding aggressive marketing. New entrants gain a significant edge by deliberately violating these norms, forcing incumbents to react to a game they don't want to play. This creates differentiation beyond the core product or service.
While domain experts are great at creating incremental improvements, true exponential disruption often comes from founders outside an industry. Their fresh perspective allows them to challenge core assumptions and apply learnings from other fields.
For communities or companies like Dave Gerhardt's Exit 5, the founder's personal brand can become the primary differentiator. This creates a 'category of one' in the customer's mind (e.g., 'The Dave Gerhardt Community'), making direct comparisons difficult and establishing a powerful moat that transcends feature-based competition.
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.
The founder's self-described laziness fostered a deep aversion to direct competition. This mindset became a strategic advantage, forcing the company to seek the path of least resistance by pursuing differentiated ideas and markets that others were ignoring, which is key to building a unique business.
Many 'category creation' efforts fail because they just rename an existing solution. True category creation happens when customers perceive the product as fundamentally different from all alternatives, even without an official name for it. The customer's mental bucketing is the only one that matters.