Creating an unfair competitive edge
5 Dec 2018 • Strategy & Business Design
Let’s create an unfair competitive edge. “I guarantee, that we are going to be super happy after that”. We’ve all heard this during our professional career at some point. Okay let’s do it, but where should I start?
Usually, an unfair competitive edge is not a gimmick or a singular feature. However, it’s commonly mixed up with Product Market fit or the terms “Potent & Unique”. In this text, I’m going to give you a break down on how to build a competitive edge for your SaaS product. So let’s get started!
You must have a unique & potent idea
Let’s face it: Building on a blank canvas is the hardest part. It’s insanely hard. Yet we still we still do it, time and time again, and some of us are going to be successful doing it. Traction, traction, traction & traction is probably all you hear at this point but how do you actually make it?
You need a product market fit, which means that when people who want your product are happy with what you are offering.
Achieving product market fit in a SaaS product looks something like this
To achieve these numbers you are good to go on and can focus on distribution. If you are not able to meet the fastest product market fit get it done before you fail. Usually, it takes years, not months or sprints to reach Product/Market (P/M) fit.
Build Growth Engine
First I have to say that you must have a P/M fit in order before there is any sense in trying to build a growth engine. Failing this, you are just throwing VC money and MBA’s at the problem. You can bootstrap this phase and look at those who have already made it to market.
Partnering is always cheaper and faster. Usually, your growth engine is oiled to work through paid ads, SEO, or virality.
Here are couple formulas that you need to get work
Build the best team
Let’s face it – you’re not that great. As your business grows you need to be more than you are in order to scale and grow your product. Plainly, this means that you need to raise money, because teams and people cost money. Bootstrapping doesn’t get you all the way and I can almost guarantee that for you.
You have to look out for different ways of raising money from sources such as Crowdfunding, VC’s, Angels, Incubators & Accelerators, Different contents, business loans, product pre-sales and so on.
I hope this gives you a more detailed picture of what it takes to create an unfair competitive edge for your SaaS product. Always build a business that can be sold. That’s a good reminder, because this gives you a clear exit plan.