Member Edmundo Costa Speaks: You Can “Win” While Holding Second Place in Your Market
In this situation at hand, a CEO was seeking insight into making the most of the company’s funding despite their competition’s recent success raising significantly more.
If you were in this situation, what would you do?
First off, it’s a good sign for your business that there are multiple players raising money and testing the same market; it means you’re in a market that’s well validated. If I were in your shoes, I would be moving quickly to nail a predictable sales model to not only move new clients down the sales funnel, but also to establish a customer success strategy to retain them.
To make my dollars take me to the finish line, I would analyze each and every one of my company’s failures and successes, while identifying key accounts and partners. In a market that’s well validated, it boils down to who will execute well. I would keep in mind that execution isn’t just about sales and strategy, but also my marketing, product, support and actual customer success. All the pieces have to be there for my go-to-market strategy.
Depending on the size of the market and other factors involved, there may be space for more than one player. In my experience I find there usually is. The question is, “Can you win as number two?” Often times, you can. In a lot of markets, there can even be three or more successful players. It’s not necessarily a one-size-fits-all. You can segment and target areas that are overlooked. In a hot market, it may not be a winner-takes-it-all kind of world. Who’s to say my competitors can put it all together better than I can, just because they raised more money? Best of luck!