Everyone tells entrepreneurs to be original and innovative. Moreover, business schools preach about first-mover advantages and revolutionary ideas. However, what if copying successful businesses is actually smarter than trying to invent something completely new?
Additionally, there’s a hidden truth that most successful entrepreneurs know but rarely share. Sometimes, being the second or third person to enter a market gives you huge advantages over the pioneers.
The Pioneer’s Painful Truth
First movers face problems that nobody talks about. Furthermore, they have to educate the entire market about why their product matters. Additionally, they spend millions of dollars on customer education while competitors learn from their mistakes.
Consider how MySpace pioneered social networking but Facebook won the market. Similarly, Yahoo created the web portal concept, but Google dominated search. Moreover, Friendster came before both MySpace and Facebook, yet most people have never heard of it.
Therefore, being first doesn’t guarantee success. Instead, being first often means being the expensive guinea pig for smarter competitors who come later.
Furthermore, pioneers face what economists call “category creation costs.” They must convince customers that they need something they never knew existed. However, second movers can skip this expensive step and focus on execution.
The Smart Copier’s Playbook
Successful copying isn’t about stealing ideas or creating exact replicas. Instead, it’s about taking proven concepts and improving them in meaningful ways. Moreover, smart copiers study what works and what doesn’t, then build better versions.
Here’s how the process works. Additionally, you identify a successful business model that’s working in another market or location. Then, you analyze what makes it successful and what problems customers still have. Furthermore, you create an improved version that solves those remaining problems.
For example, Rocket Internet built a billion-dollar empire by copying successful American internet companies and launching them in other countries. Similarly, they took proven models like eBay and Amazon and adapted them for European markets.
Moreover, this approach reduces risk significantly. Instead of gambling on untested ideas, you’re building on proven foundations. Therefore, your chances of success increase dramatically.
Why Markets Love Improved Copies
Customers rarely want completely revolutionary products. Instead, they want familiar products that work better than existing options. Moreover, this creates perfect opportunities for smart copiers who can iterate on existing ideas.
Think about smartphones before the iPhone. Additionally, companies like BlackBerry and Palm had created the category, but their products were complicated and limited. However, Apple didn’t invent the smartphone. Instead, they took existing concepts and made them significantly better.
Furthermore, customers were already familiar with the basic idea of mobile internet and email. Therefore, Apple could focus on superior execution rather than market education. As a result, they captured most of the value despite entering the market later.
This pattern repeats constantly in business. Moreover, the companies that perfect existing concepts often become more successful than the original inventors.
The Execution Advantage
Original inventors often struggle with execution because they’re too focused on being first. Additionally, they rush to market with imperfect products to maintain their head start. However, this approach frequently backfires.
Smart copiers have time to study these execution mistakes. Furthermore, they can observe customer complaints, feature requests, and market feedback. Therefore, they enter the market with superior products that address known problems.
Moreover, copiers can learn from pioneers’ marketing mistakes. Instead of guessing which messages resonate with customers, they can see which campaigns work and which ones fail. Additionally, they understand pricing strategies that customers accept or reject.
This connects perfectly with the anti-network effect philosophy where focused execution often beats broad innovation.
Finding Your Copy Opportunities
The best copying opportunities exist in three main areas. Additionally, understanding these patterns helps you identify profitable situations for smart copying.
First, look for successful businesses in other geographic markets. Moreover, many business models that work in one country can be adapted for others. Furthermore, you can study their successes and failures without competing directly.
Second, examine successful businesses serving different customer segments. Additionally, a B2B solution might work well for consumers, or vice versa. Similarly, enterprise software concepts often translate well to small business markets.
Third, watch for successful offline businesses that haven’t moved online yet. Moreover, many traditional business models can be improved significantly through technology and digital distribution.
The Legal Way to Copy
Smart copying must be legal and ethical. Additionally, you’re not stealing intellectual property or copying trademarks. Instead, you’re adapting business models and improving upon public concepts.
Focus on copying strategies, not specific implementations. Moreover, study how successful companies acquire customers, retain them, and generate revenue. Furthermore, look at their operational approaches and market positioning.
For example, Dollar Shave Club didn’t invent razors or subscription services. However, they combined these existing concepts in a new way that disrupted the shaving market. Similarly, they copied the subscription model from other industries and applied it to personal care.
Additionally, many successful restaurants copy concepts from other cities or countries. They take proven formats and adapt them for local markets. Therefore, copying becomes innovation through intelligent adaptation.
The Speed Advantage
Copiers can move faster than pioneers because they have a clearer roadmap. Additionally, they know which features customers want and which ones they don’t. Moreover, they can avoid the trial-and-error process that slows down original inventors.
Furthermore, copiers can focus their resources on execution rather than research and development. Instead of spending years figuring out product-market fit, they can build on proven foundations. Therefore, they reach profitability faster and with less risk.
Smart copiers also benefit from improved technology and tools. Moreover, solutions that were expensive or difficult for pioneers might be cheap and easy for later entrants. Additionally, this technological improvement creates opportunities for better execution.
When Copying Becomes Innovation
The most successful copiers eventually become innovators themselves. Additionally, they start with proven concepts but gradually add original improvements. Moreover, these incremental innovations often become significant competitive advantages.
Consider how Uber copied the taxi concept but added technology and convenience. Similarly, Airbnb took the bed-and-breakfast model and improved it through digital platforms and user reviews.
Furthermore, these companies became market leaders not through original invention but through superior execution of existing ideas. Therefore, copying became the foundation for eventual innovation.
The Mindset Shift
Successful copying requires changing how you think about business opportunities. Additionally, instead of asking “What’s never been done before?” ask “What’s been done successfully that could be done better?”
Moreover, this approach reduces the pressure to be completely original. Instead, you can focus on being better, faster, or more convenient than existing solutions. Furthermore, customers often prefer improved versions of familiar products over revolutionary new concepts.
Additionally, copying successful models gives you proven business metrics to work with. Therefore, you can estimate customer acquisition costs, lifetime values, and profit margins based on real data rather than guesses.
Getting Started as a Smart Copier
Begin by studying successful businesses in adjacent markets or industries. Moreover, look for companies that have solved similar problems for different customers. Additionally, pay attention to customer complaints and feature requests for existing products.
Then, identify specific improvements you could make to existing solutions. Furthermore, focus on problems that customers frequently mention but current providers haven’t addressed. Moreover, consider how new technology might enable better execution of old concepts.
Finally, test your improved concept with potential customers before building anything complex. Additionally, validate that people actually want the improvements you’re planning to make.
The copy-cat advantage is real, and smart entrepreneurs use it regularly. Moreover, while others chase completely original ideas, you can build profitable businesses on proven foundations.
