As a startup investor, we are often asked, “Should first-time founders focus on their product or distribution?”
It’s a big question with a lot riding on it. Today , we’ll break it down in simple terms and help understand what can work !
For the Product-Centric Way:
- Innovation is Key: If your startup’s idea is brand-new and game-changing, focus on your product. Unique products can create their own demand.
- Users Come First: Build a strong product that users love. Listen to what your early users say, and keep making your product better. Happy users are your best promoters.
- Quality Matters: Make sure your product is capable of enabling word of mouth. A sticky product can lead to happy customers who tell their friends, and that’s a powerful way to get the word out.
For the Distribution-Centric Way:
- Be Quick: Get your product out there fast. Being the first in the market can give you an edge over the competition.
- Let People Know: Even with an okay product, if you focus on telling people about it, you can create demand. It’s about making sure people know you exist.
- Scale Up: In some markets, having a good distribution plan can help you grow faster and become a leader.
Way Forward
In the real world, it’s usually not just one or the other. Successful startups find a balance:
- Great Product: If you have an amazing product, take your time and make it even better before you focus on distribution. A weak product won’t go far even with the best distribution.
- Tough Competition: If your market is full of competitors, shout about your product loudly. Be visible to stand out. Crack the right distribution.
Remember, there’s no one-size-fits-all solution. The key is to be flexible and adapt as your startup grows. Look at successful startups; they change with the times.
In the end, your startup’s success depends on how well you deal with challenges. Whether you focus on your product or distribution, always put your customers first and be ready to change as you go.
Author:
Ashish Padiyar
