Knowledge Marketplace
My First Million

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 Takes

Most Silicon Valley entrepreneurs fail because their ego prevents them from building what customers actually want versus what they think customers should want

Spiciness
business_philosophy

The Reasoning

Chinese companies succeed by focusing purely on engagement metrics and user demand without caring about prestige or brand perception, while US companies optimize for what looks good to peers

What Needs to Be True

  • Consumer preferences differ from entrepreneur preferences
  • Ego significantly impacts product decisions
  • Market success requires following demand over vision
  • Prestige and success are often inversely correlated

Counterargument

Vision and taste are crucial for breakthrough products, following market demand leads to commodity products, brand prestige drives premium pricing, ego drives necessary risk-taking

What Would Change This View

Seeing more examples of vision-driven companies beating market-driven ones, evidence that prestige translates to superior unit economics, data showing ego correlates with innovation

Implications for Builders

Test low-prestige but high-engagement products

Measure engagement over brand perception

Study successful Chinese apps for mechanics

Be willing to build 'embarrassing' products that work

Example Application

Instead of building sophisticated AI tools for professionals, create simple but addictive AI-powered games that people actually use daily