Copying What Works

Aug 29, 2024

A common advice in business is to simply copy what works.

Instead of creating a new ad format, just copy what works for your competitors. This is both good and bad advice. It's good because you can establish a working business more quickly and avoid wasting effort on potentially unsuccessful ventures. However, it's bad because it puts you in direct competition, resulting in lower profitability and deprives you of the opportunity to create something original.

If you're in a competitive market and this is the game you want to play, copying what works is a solid strategy. You can still innovate in some areas while replicating others by copying.

If your ambition is to escape competition and create something entirely new, copying may hinder true breakthrough innovation. Yet even in this scenario, there are still some aspects you shouldn't reinvent: accounting, legal setup, communication stack, or tools. Instead, you should find a focus area where you're not copying, but creating, with the hope of eventually discovering a breakthrough idea that works.

Both strategies can be effective for different types of people. Ultimately, you should be aware of which game you're playing and understand the advantages and disadvantages that come with it.