First mover vs established market
Being a first mover as a new company might sound attractive, but according to Casper Dreymann it’s hard work. Often much harder than entering an already established market. Not because you need to identify your market and target group, but you need a lot of resources to introduce and promote your new “never seen before” product or service and, then just as many resources to establish your market.
Of course, this challenge would be easily overcome if you already have all the funding you need and all the time in the world, but that is rarely the case. In fact, the odds and challenges for many new businesses are extremely harsh, especially, if you want to attract an investor. As Casper explains:
“In my book, it should make no difference whether you are a first mover business or part of an already established market. The demands are the same. You need to show people like me a proof of concept within the first 6 months. If within the first year you succeed in meeting expectations, then we’re good to go.
But, if you still haven’t proven your business worth, you will most likely not succeed, in which case it will be extremely hard to find an investor. Of course, if you have a mentor, then you might get a second chance to get your business going. But, as a rule, you need to proof your worth as a business idea within the first year.”
Casper is involved in regional business angel organisation, and he and his fellow business angels are regular introduced to aspiring start-ups and new businesses, all of which come with high hopes and quite often unrealistic dreams of making it big. It’s fair to say that far from everyone makes it through the eye of the needle as these events, but Casper still encourages those who try and fail to get back on the horse and make a second and a third try.
“There’s a great need in Scandinavia for entrepreneurs, for people who dare dream and will fight to make their dream come alive. And I’m happy to be able to help some of them join the competition and succeed.”