In the vast landscape of agribusiness and agtech, standing out and creating new market opportunities is a challenge many entrepreneurs face. Traditional approaches often focus on competing for existing demand, but what if there was a way to not just compete, but to redefine the market itself?
In a recent presentation with The Combine in Nebraska, I had the opportunity to share the power of category design with agtech founders going from zero to one.
You can watch the full presentation here.
For those of you who prefer to read, here are some quick notes:
The Problem: In business, we often witness three prevailing approaches to going to market: brand-led, product-led, and customer-led strategies. While these have their merits, they fall short of creating exponential outcomes. It's time to move away from solely capturing demand and instead prioritize demand creation. We must challenge the status quo and explore new avenues to generate net new value. The key lies in becoming a problem-led company.
The Opportunity For Different Thinking: Imagine two shoe salesmen sent to a remote African village. One salesman sees a lack of shoe-wearing individuals and concludes there's no market opportunity. The other sees the same situation as an enormous opportunity because nobody wears shoes. This story illustrates a crucial mindset shift—instead of focusing on existing demand, we must seek out untapped market potential. Category design starts by recognizing the problem you can solve, even if customers haven't realized it yet.
Problem-Led Companies: They identify a significant problem in the marketplace and position themselves as the solution. By defining the problem and designing a compelling solution, they become the trailblazers and dominate their space. Remember, the company that defines the problem and crafts the solution is best positioned to capture the majority of the market share (76%).
Crafting Your Category: To embark on a category design journey, you need a solid framework. Start by evaluating your vision and mission. Understand who your target audience is and what problem you're solving for them. Consider the potential ecosystem of competitors and collaborators in your space. With a clear understanding of your category, you can develop a robust business model and secure the necessary funding. Remember, category design requires action, and it starts with you.
The Power of Evangelism: As a leader, your role extends beyond managing teams and filling roles. Your number one job is to be the evangelist for your category. Cast a vision that resonates with your team and customers. Define the problem and position your solution as the transformative force in the industry. By evangelizing your category, you become the voice that shapes the conversation and drives change.
A New Lens for Business: Category design represents a paradigm shift in business strategy. By reimagining the market, you can create new opportunities and shape the future of your industry. Embrace the art and science of category design, become a problem-led company, and redefine the conversation in your space.
Make something different. Make people care. Make fans, not followers.