Local Maximum Versus Global Maximum: Lessons for non-US Startups

  1. They are too focused on local maximum and think that starting in the local market is the right bridge to get to a bigger market. Usually this is not the case. The lessons they learn are not just not applicable elsewhere. And if the market is small (ie. sub 10M people, you are capped out and can’t get critical mass).
  2. They don’t do their homework to learn about equivalent business models in other markets. This is important to learn lessons from other companies, whether successful or not. There is no excuse for this as there is a wonderful tool called Google.
  3. Because of this, many founders face the “Hometown hero” or “High School Hero” syndrome. They are legitimately one of the top founders in their market. But they have no idea what the global standard and level is. Thus like the High school hero, they end up missing the mark of what is required at the top competitive level. It’s like the local high school basketball team competing against an NBA league team.

Ever curious: Tsundoku, Reader, Aspiring Shokunin, World traveller, Investor & Tech/Media exec interested in almost everything! www.marvinliao.com

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Marvin Liao

Marvin Liao

Ever curious: Tsundoku, Reader, Aspiring Shokunin, World traveller, Investor & Tech/Media exec interested in almost everything! www.marvinliao.com

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