You do not need to be first to be successful in your software business

As a business, you have two options: you can be the first or you can be 10 times better. You can bring a new software product on the market or you can come up with a product that offers more and functions better.

One of the key elements for the success of a software business is to bring something new. This can be a new product or a an improvement to an already existing product. Therefore, you do not need to be first, you just need to be 10 times better than your competition, as Peter Thiel mentioned in his book “Zero To One”.

Although it may seem difficult, these two strategies represent an important part of your business mission. The benefits they offer play an essential role in your business growth.

Let’s talk about each of them.

Be the first

When you are the first on the market, you make the rules and the game is simple for you. Being the only supplier of the software product, you benefit of the first-mover advantages.

Technological leadership

If you are the only provider of a software product or service, you can gain technological leadership and a monopoly.

Brand name recognition

It is easier for people to remember your brand when you are the only one associated with a product.

No worries about the switching costs

Switching costs are the expenses customers support when they turn to a different product. Being the only supplier on the market means that your customers do not have a second option from where to buy your product and they remain loyal to you.

Be 10 times better

If you are not the first, you can be the one that does it perfect. It is hard to name a software that has no flaws or that has no features which need to be improved. This is your best shot!

You know what to improve and you know how to do it in order to satisfy the needs of your audience 10 times better than how already existing products do it. For this reason, you can come up with a software product that uses better technology, is user-friendly and customers benefit of 10x more and better results.

Conclusion
These two strategies are guidelines that help you grow your business. Before choosing one of them, it is important to understand your business mission, values and objectives. Remember that a smart choice today will become a successful one tomorrow.

Monopoly is the condition of every successful business.