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StrategyMarketing5 min read

The category creation trap

"We're creating a new category" is the most expensive sentence a startup can say. Most don't, and the few that do don't realize how much it costs.

Category creation is real and occasionally world-changing. It's also the rationalization a startup reaches for when nobody understands their product. The truth is usually duller: you're in an existing category but want to be exceptional within it.

How to tell which you are

If buyers already have a budget line that fits you, you're in a category. If they have to invent one to buy you, you're creating one. Most products that claim category creation are actually in the first bucket but want to be in the second for narrative reasons.

The actual cost

Creating a category means teaching the market what to call you, why it matters, and how to evaluate. That's a five-year, eight-figure project. Most companies don't have either resource to spare and end up with neither category recognition nor strong incumbent positioning.

Be the best in an existing category before you try to invent a new one. The first is hard. The second is harder.

Most operations are behind where they could be.

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