126 How To Spot Legendary Startup / New Category Ideas

In this episode of Lochhead on Marketing, let’s talk about how to spot a legendary startup / new category idea. It turns out there are a few secret hiding places where these ideas hide, but they’re in plain sight. One of these ideas was shared by Avram Miller in a recent episode of Follow Your Different (FYD 234) when we were discussing his new book, titled The Flight of a Wild Duck. It is a simple, powerful, yet under-used idea for discovering massive ideas for new companies, products or categories, so we are going to talk about it in detail here. As a bonus, I’ll share one of my own as well! So stay tuned to this episode, and enjoy. Avram Miller on Being a Legendary Startup When we talked to Avram Miller in Follow Your Different, we got into the discussions of why a lot of startups seemed to fail. These startups had, on paper, great ideas for products, services, and categories that should have dominated the market. Yet looking back, most of them did not achieve that potential. So what was the culprit? It was time. Specifically, they were too early or ahead of their time. Whether it was due to being technologically early or there’s no demand for that particular idea yet, it was just too early. One of the examples was WebVan.com. It was a startup designed to deliver groceries to your home, and it was launched in the late 1990s. If you think about it nowadays, it makes sense that it would be a successful business. Yet WebVan.com shut its business down in 2001, while the same model today made Amazon a household brand. So if you have a legendary startup idea, one of the things you need to consider is this: is it too early, or just the right time to launch it to the world? Never Stop Innovating Idea no. 2 comes from me, and what I have observed upon past and existing category leaders in their respective markets. As I have discussed here in Lochhead on Marketing, and also at our Category Pirates newsletter, sometimes these Category Kings settle with fighting for a share of the market, rather than innovating and creating new markets for their own. One of the most known examples of this was Kodak and the physical media category, which tried to adapt too little, and too late. Surprisingly, Avram Miller shares in our conversation that Intel’s CEO Andy Grove was also resistant to innovating things early on in Intel’s history, which almost led them to miss out in getting into the chipset business for personal computers. As for a great example in the opposite direction, Victoria’s Secret got left in the dust by Rihanna's line of lingerie called Savage. This was because it moved away from the POV of "be like these supermodels", to more inclusive and being comfortable with their own body. This radically different POV redesigned the category. As most native digitals see exclusivity as elitist and not welcoming, it was also embraced by the market almost overnight. So at the end of it all, would you rather be fighting to stay on top of your current market, or be the King of the Hill in a category that you have created or innovated? To hear more ideas on how to become a legendary startup or innovate your current business, download and listen to this episode. Bio Christopher Lochhead is a #1 Apple podcaster and #1 Amazon bestselling co-author of books: Niche Down and Play Bigger. He has been an advisor to over 50 venture-backed startups; a former three-time Silicon Valley public company CMO and an entrepreneur. Furthermore, he has been called “one of the best minds in marketing” by The Marketing Journal, a “Human Exclamation Point” by Fast Company, a “quasar” by NBA legend Bill Walton and “off-putting to some” by The Economist. In addition, he served as a chief marketing officer of software juggernaut Mercury Interactive. Hewlett-Packard acquired the company in 2006, for $4.5 billion. He also co-founded the marketing consulting firm LOCHHEAD; the founding CMO of Internet consulting firm Scient,