Growth often comes from small, systematic changes that leverage how business or human nature works. These levers are 'hidden' not because they're unknown, but because their immense importance is underestimated or they aren't acted upon within existing teams and budgets.
WP Engine thrived in commodity hosting by emphasizing human support. This became a powerful moat because VC-backed competitors, culturally and financially focused on high software margins, would never copy a strategy that required expensive human capital, even if it worked.
In a space like AI where everyone uses the same models and tech moats are rare, competing on technology is futile. The winning strategy is to ignore the competition, focus intensely on a narrow ideal customer, and build an amazing product vision tailored specifically to their needs.
A startup's success depends on many factors working in concert. Founders often default to their strengths (e.g., an engineer building the product). The correct, de-risking approach is to first tackle the biggest uncertainty or personal weakness, such as customer acquisition.
The goal of thought leadership isn't just to be right. It's equally valuable to act as a 'foil,' presenting a clear viewpoint that helps others gain clarity on their own beliefs, even if—or especially if—they disagree with you. This solidifies their thinking and makes your content impactful.
Since current AI is imperfect, building for novices is risky because they get stuck when the tool fails. The strategic sweet spot is building for experts who can use AI as a powerful but flawed assistant, correcting its mistakes and leveraging its strengths to achieve their goals.
A brand isn't just an identity; it becomes a competitive moat only when it directly influences purchase decisions. The true test is when a customer buys your product *because* of the brand, even if it's more expensive, has fewer features, or is otherwise inferior on paper.
Niching down doesn't limit your market; it clarifies your value proposition for an ideal customer. This extreme specificity about your product's strengths and weaknesses also appeals to a much larger adjacent audience, who can now confidently evaluate your trade-offs and decide to buy.
Founders often mistakenly market "AI" as the core offering. Customers don't buy AI; they buy solutions to their long-standing problems (e.g., more leads, better service). Frame your product around the problem it solves, using AI as the powerful new tool in your solution space that makes it possible.