Remember, it’s not the idea, it’s the execution that matters:
In fact, execution is probably one of the biggest competitive advantages that startups typically overlook. Investors would always rather have an â€œAâ€ entrepreneur with a â€œBâ€ idea than a â€œBâ€™ entrepreneur with an â€œAâ€ idea. This is why investors always rate the management team as the key criteria they use to decide where to invest their funds. Ideas donâ€™t make profitable businesses. Management teams that successfully execute their ideas make all the money.
For example, a discount airline is not an innovative concept. Major companies such as United and Delta have tried to execute this many times. Only Southwest has figured out how to make a low-cost, point-to-point airline profitable. While the idea is not unique, the successful execution is rare. This is why â€œfirst-mover advantageâ€ may not be an advantage at all. Competition is a valuable thing. Examining the successes and failures other people made with the same idea will always help execution.
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