Photo by Roger Barker on Flickr.
Google and Apple are not only competitors… they are collaborators. Indeed, Apple and Google both offer top level smartphones – The iPhone from Apple and the assortment of Android devices by Google (Google not only has its own phones but is the main proprietor of the Android open source project).
In the same world, Samsung and Apple are rivals (and becoming even more rival-ous) with competing smartphones (Samsung runs Android) sparking ferocious lawsuits back and forth, but Samsung is also a major supplier of parts to Apple.
This segment of my continuing series on Rules of Entrepreneurship is all about knowing when and how to compete and when collaboration is a better option. They are not mutually exclusive. This is a natural segue from my last post where I suggest that entrepreneurs focus on doing one thing well.
Principle: Don’t Reinvent the Wheel
It frustrates me to watch startups (usually not very good ones) try to reinvent the wheel. A classic example of this was from back in 2007 when I was sitting in a Starbucks in Columbia, MD. We had a group of entrepreneurs who gathered there on a daily basis and cowork together.
One of the guys I was working with introduced me to a pair of African-American entrepreneurs and he wanted me to hear about what they were building. I sat down and listened to their pitch. They were building the “YouTube for the African-American community”.
What? Why? Why not use YouTube?
They were well into the process of building an entire video platform from the ground up, complete with their own video encoding technology, instead of leveraging what YouTube (and subsequently Google) already created.
The entrepreneurs real mission was creating a video-sharing community for African-Americans, not creating video technology for African-Americans to use. I told them that day that they should abandon attempts to build their own video service, and instead leverage YouTube (which is built and maintained by really smart people at Google) to build the community they really wanted to build.
Why re-invent the wheel? You distract yourself from your core goals.
Sidenote: I have never heard of or from those entrepreneurs since.
As an entrepreneur, part of the process is identifying your competition. We certainly have done that at WP Engine. Sometimes, it is to your benefit to team up with your competition to achieve a common goal. Remember, business is business and it’s not personal. Don’t let your desire to “win” get in the way of your ability to get ahead.
Also, remember the age-old saying, “A rising tide lifts all ships”. What is good for your competition is often good for the entire industry you’re in. Everyone wins.
Certainly that’s not always the case, but it certainly isn’t not always the case.
In my opinion, competition is a bottom-line issue and there are lots of ways to positively affect your bottom line. Usually, competition does not equate to a zero-sum game, an assumption that rookie entrepreneurs tend to make. (I did this a lot in 2006, 2007 while at b5media and trying to take pot shots at competing blog networks – years later, I find it all kind of silly).
When you do choose to take on direct competition, keep it narrow, precise and for a specific purpose. Don’t allow personal feelings to affect your business strategies and, in the process, keep the door open to cooperation with your competition in other areas.
Next week, I’ll continue this series and talk a bit about release cycles – which is always a fun debate. If you’re not already subscribed to this blog, do so now. Also, follow me on Twitter where I’ll be talking about entrepreneurship, WordPress and a healthy dose of sports on the weekend.