I was discussing with one of my friends about our temptation about starting a startup in hot markets. Here are my brief thoughts on it –
In my opinion, at any given time, there are always more than 1 hot markets. “Real-time web” is one, so is “social-gaming”, and so is “iPhone apps”, and so there are many. The key is — you pick one market, and keep pushing your idea in that market. It’s easy to get distracted by other hot markets all the time. It’s very tempting to switch to other hot market just because few others became successful in that market. But when we notice such successes, and realize that it’s a hot market, there are many others who also notice it and realize that it’s a hot market. Also, after we switch to that market and before we really start making our impression into that market, it might be over competitive and too late, unless we’ve that kind of expertise and speed of execution.
I think the key to win based on hot market approach is — we need to be pioneers or early adopters of that market. We can’t be too late in the game. I think 2–3 years is late. But just being pioneers or early adopters of any hot market does not guarantee any success. It’s our relentless belief and persistence to stick into that market until people start believing that market might make us successful. We can’t just hop-around to hot markets before we really execute for long and well in one market.
On the other hand, I’m not saying we should completely ignore the trends of hot markets. The best strategy might be to see how can we leverage those trends for our existing idea and market. We need to see what we can learn from other hot markets, and how can we bring similar experience to current ideas. There would be more innovative opportunities on the intersection of two or more hot markets.
Originally published at aditya.kothadiya.com on March 14, 2010.