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

Market timing beats team quality and product excellence - picking the right market is easily the most important factor for startup success

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business_philosophy

The Reasoning

Strong markets pull success out of mediocre execution, while great teams in tiny markets will fail despite superior capabilities. Market demand creates forgiveness for poor execution.

What Needs to Be True

  • Market must be large and growing rapidly
  • Customer pain must be severe enough to tolerate poor experiences
  • Market timing must align with regulatory/technological enablers

Counterargument

Great teams can create markets that didn't exist before, and poor teams will fail even in great markets due to execution issues

What Would Change This View

Evidence that team quality consistently overcomes market challenges, or that great markets frequently fail to produce successful companies

Implications for Builders

Spend more time on market research than product development initially

Look for markets with desperate customers rather than perfect products

Time entry with regulatory or technological inflection points

Example Application

Coinbase succeeded despite frequent crashes in 2014 because crypto market demand was so strong that customers tolerated poor user experience to access the market