Start a Company when it’s already Crowded – Henry Ford Style

I’ve done some informal asking around lately and it seems the prevailing thought is that Henry Ford invented the automobile. In the fifth grade I made a large (around 3′ x 20′) time line of Henry Ford and I remember placing the invention of the automobile on there.

Henry Ford had Competition

Actually, when Ford rolled out his famous Model T there were more than 500 companies building cars. One of the reasons many of us think Ford invented the auto is because he did it much better than anyone else. Can you name a single car company in the early 1900′s other than Ford? I can’t. (Would you believe Oldsmobile was actually around before Ford?)

Neither did Ford invent the assembly line. Ransom E. Olds (of Oldsmobile fame) invented that in 1901, seven years before Ford revolutionized it for the Model T.

A Branding Master

Ford’s name sticks out however. He entered a very crowded marketplace and did things different. Most companies were building luxury cars. Ford’s Model T was basic. It had no features and only came in black. While other car companies were building bigger and more luxurious the Model T competed on no frills and economy (sound familiar lately?). Henry Ford created a niche all his own and had little competition.

Amazon did the same thing. Bookstores were everywhere in the late 90′s but Amazon created a segment all their own with almost no competition.

Your Business

If you’re starting a business don’t compete. Carve out something all your own and become known for it. Be the best in the world at what you do.

Businesses who compete go out of business much easier than businesses who dominate something all their own.