Entrepreneurs respond to existing demand, they don’t create it. The market should already be “pulling” for what you’re building; the demand should already exist.
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We have limited influence over: - What kinds of things customers want - How bad they want them - Global supply But we have almost zero influence over: - How many customers there are - How much they can spend - What their alternatives are - Socio-political trends
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VC money enables startups to operate outside of normal market conditions: - CAC doesn’t matter as long as user base is growing - They can undercut market prices (and lose money) - Often, they ignore gov regulations It looks like they’re creating demand, but it doesn’t last.
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I wrote a post that expands on these ideas: "Ultimately, your product's potential is determined by the size, momentum, and characteristics of your market." https://justinjackson.ca/surfing pic.twitter.com/GWanzCGEOY
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What does responding the the “pull of the market” look like? http://Tailwindui.com was just announced a few hours ago. There are hundreds of tweets like this:pic.twitter.com/eFaCLNxs50
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