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Ask HN: My startup is a feature, not a product

8 points by uh_what ↗ HN
My company sells a product in a space where there are 2-3 incumbents that capture 99% of the revenue. So far, our customers LOVE our product's primary feature, but I'm afraid that once we actually become popular enough to register on our competitors' radars, they will simply copy our feature and we'll be toast.

Our product is not nearly as feature rich as our competitors, but we manage to consistently obtain customers by targeting a niche demographic for which our core feature is of the utmost importance.

Has anyone here been in a similar position, and if so, what did you do and how did it turn out?

5 comments

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codegeek
"targeting a niche demographic for which our core feature is of the utmost importance."

This is good. Keep doing that. Don't worry about competitors too much. Plenty of stores sell pizza but there is always a favorite in town because of their special ingredient, customer service and the ability to make customers feel good. If your "feature" does that well, you will always have customers.

Btw, the phrase "riches is in the niches" is very true. Don't underestimate the power of niche businesses.

rajacombinator
Not necessarily the end of the world. Depends how good you are at that feature, how important it is to your customers, and how hard it is for your competitors to add it in a meaningful way. People always worry about what if FANG megaliths add my product as a feature. But it should be well known by now that they can’t easily do these things without detracting from their main product focus, so they often end up half-assing it, have poor talent on those teams, etc. Occupying the main thoughtspace for your feature can be enough. Whether you’re good enough to survive that way only you can tell.
sharemywin
If your feature would be annoying to people outside the niche they may not bother with it.
freehunter
One of the best ways this ends is you get acquired by your competitor. Either you make a quick buck and start the next one, or you have a nice comfy job with great pay.

You could also try the Netflix route of "become HBO before HBO becomes Netflix" if you can copy all of your competitors features at a lower cost, better quality, etc.

You could not classify as a startup but instead just be a small business and slow your growth. That way you get a steady income for your own company, but not get big enough to threaten your competition.

Or you could figure out what other related needs your niche has that are unmet and differentiate yourself that way. That way you build a name for yourself in that niche and it's more than one feature that needs to be copied. Take your feature and turn it into a full product. Focus on your niche, not the broad audience your competitors have. What do your customers need that the big guys aren't doing? You're a startup, move fast and break things.

Just a few options. The worst option (IMO) is to keep your product just a feature until finally your lunch is eaten and you're out of business. I've had that happen. Doesn't feel good. Innovate, that's why you're a startup.