> If you're launching a new product, how do you compete with products that have loads of features? One way to compete with incumbents, in the beginning, is by

> If you're launching a new product, how do you compete with products that have loads of features? One way to compete with incumbents, in the beginning, is by niching down, and offering things they can't. Using your tax software example, it'd make sense to start with a single persona first (e.g. Tax Software for US-based freelancers). By building a tool for the specific audience, you can offer an experience a generic tool can't (i.e. a sole proprietor doesn't care much about corporate income taxes, excise taxes, etc.). You will also have less competition if you decide to go down the paid acquisition route. FWIW, I have noticed that some subset of my customers only use a particular set of features, and don't care much about the rest. Another advantage of focusing on a niche is that people with similar characteristics tend to congregate in a handful of communities, which makes it relatively easier to reach them. At some point, you can hopefully take advantage of word of mouth, and that is an incredibly powerful way of acquiring new customers. Also, when you're the person who built the service, you can offer support to customers in a way your established competitors simply can't. Caring about things is a competitive advantage. Make no mistake about it: it's going to be incredibly hard. However, by going after the existing market, you minimize chances of market mistake, which is costlier than a product mistake (i.e. you increase your odds of survival). P.S. Having an existing audience makes things easier. People buy from people they know, trust, and like, even if your offering isn't the best out there.