Too early or too late?! Why you should consider thinking less about market timing

What exactly is "time to market"

If you have been in the entrepreneurial game, you may have already heard that your time to market is important.

But what are we exactly talking about? And is it justified all the worry?

Time to market (TTM) is defined as the length of time from the ideation of a product until it is released to the market, meaning, from idea to when it starts selling.

There is quite a voluminous body of research showing that being the first in a specific market offer or category brings advantages, truth is that being the first to arrive at the market does not happen without its drawbacks and hell pits.

Regardless of how we see it, TTM is one of the KPIs. There is a best time to release a product and that time is not always as soon as possible, although with more innovative offerings it usually is. Releasing at the right time requires adaptability, the ability to learn quickly, and resilience. These capabilities are at the forefront of time-based competition today.

Knowledge goes that if your company is the first to arrive in the market it will also have a greater impact on its followers.

Being second to market can make you a winner!

We may be biased, but we believe it is not so great being the first to arrive in the market. In fact, on the same line as Walmart, Kroger, and Costco we believe being “second” to market can make you a winner!

Don’t give up on reading just yet, we have a reason to say so.

When you invent something completely new novel, it seems at first that you will be the most successful as you pioneer your never seen product into the masses. While this can be true and it's always great to see truly new, what happens much more often is that the inventor who tweaks and changes an existing item has more success.

If we think about the concept of disruption innovation coined by Clayton Christensen, which describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up the market, eventually displacing established competitors, this becomes a little more evident.

For instance, the first to market can be a financially more powerful company, that invested a considerable number of resources to launch a specific product, but that then gets displaced by a smaller “second” or “third” competitor that made use of their market penetration/building effort and improved the first launch product with data for users, being able to cater to the actual needs and cravings of the userbase.

We would even say that the first to get to market will have to do all the heavy powerlifting, will have greater marketing costs, and will need to invest more resources to ensure distribution.

This is not to say you shouldn’t try to be innovative and always use a second-to-market strategy. What we mean is, that being second to market is not such a big deal and can actually be your greatest advantage.

What about being too late to arrive?

We would call it BS as well.

If there is a market for your product, and if you keep your eyes on your competitive advantages compared to your competitors there is no such thing as too late to market.

Taken to extremes this idea of being too late to market would mean that products that are not particularly innovative or are competing in a red seas environment would have absolutely no chance of succeeding, and truth is, they do. (Just look at the soap industry.)

There are also several successful cases of late Bloomers, just check the classic example of late entry in the market is Zantac (a pioneer of ulcer relieving drugs), or Boeing.

So, if too early and too late to market shouldn’t be the focus, how do we assure a successful entry into market?

What to focus on to a successful market entry

1. Value Proposition

Focus on answering these questions. If you can't answer them you haven't done your homework.

What is your company’s value proposition?

Do you have the team, the skill set, resources to act upon it?

2. Know your existing competition

Know the exact products and processes of your competitors. See it unpassionately as a customer, not as a competitor. Recognize what they are doing good. Learn as much as you can from them. Competition is awesome. Embrace it.

3. Publicity

Create publicity for your entrance. Seek to get your audience to hear about you from others. There is great value in getting your audience to look for you or to become aware of you before you try to approach them at all.

For this you may need to invest in PR, start creating a brand for yourself, develop knowledge, create a valuable network, etc.

4 . Brand Value

Is your brand valuable from your customers' point of view?

Does it bring or have the potential of bringing a sense of belonging? Does it inspire greatness? Do your products and your brand align? (Consistency is key) Is your story compelling?

We can’t stress enough that when looking at your company and your products you should always try to put yourself in your customers’ (or potential customers') shoes. It doesn’t matter what you think about your company and your product. Ultimately, the buyers are the ultimate judges of your successful launch.

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Catarina Nunes

I am passionate about technology, business, innovation, and music. Currently serving as CEO of 3DVentures and Will&Way.