My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
Back to Mental Models
Category of One Strategy
Instead of competing in existing categories, create a new category where you're the only player
Decision Rule
Ask: Can I change some fundamental aspect of the business model to avoid direct competition?
How It Works
Works because customers mentally categorize options - being the only option in your category means no direct comparison
Failure Modes
Creating category that customers don't understand or want
Making category too narrow to be profitable
Failing to defend category when competitors enter
Example Decision
“Five Hour Energy avoided competing with Red Bull and Monster by creating energy shots category at checkout counters instead of refrigerated energy drinks”