My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
Innovation and building 10x better products is nearly impossible in today's environment, so entrepreneurs should focus on 2-3x better products through differentiation rather than innovation.
The Reasoning
10-15 years ago you could have special supplier relationships or unique technical capabilities, but now anyone can spin up websites, features are no longer defensible, and everyone has access to the same resources and tools.
What Needs to Be True
- Technical barriers to entry continue decreasing
- Supplier relationships become commoditized
- Feature development becomes easier with AI/no-code tools
- Patent protection becomes less valuable
Counterargument
True breakthrough innovation still creates massive value (AI, biotech, space) and some markets still require genuine innovation to succeed.
What Would Change This View
New types of technical moats emerging, return of supply chain advantages, or evidence that innovation-focused startups significantly outperform differentiation-focused ones.
Implications for Builders
Focus on differentiation through branding, positioning, and customer experience
Use the remix framework instead of trying to invent new categories
Compete on distribution and marketing rather than product features
Build businesses that can be profitable without venture-scale innovation
Example Application
“Instead of trying to invent a new type of mattress, take existing mattresses and differentiate through sustainability messaging, veteran-focused branding, or premium positioning to capture higher margins.”