Domain expertise is the moat
I have built a number of products (teary-eyed: all failed) and I have reached the moment of epiphany: while propping up a product, the code is not the most inmportant asset that you need to possess from the get-go.
We can gloss over the fact that you need to have a good product-market fit, a good team and a good business model.
But, even when you have the above, the most important asset that supersedes all of the above is domain expertise.
I remember when I was working on rentobase.com, one of the problems I struggled with was the property management lingo.
For example, what is the difference between a lease and a rental agreement? What is the difference between a tenant and a lessee? What is the difference between a landlord and a lessor? These are the kind of questions that I had to ask myself every time I was writing copy for the website, or when I was talking to potential customers.
Well, it can be argued that the terms are google-able but the amount of time that was spent trying to understand how they can be translated into a product was pretty significant.
What is domain expertise?
Domain expertise is the deep understanding of the industry, market, and specific problems that your product aims to solve. It goes beyond just knowing how to code; it involves understanding the nuances of the industry, the pain points of your target customers, and the competitive landscape.
For example, suppose I am building a heathtech product. I can have the best engineers in the world, but if I don’t understand the healthcare industry, its regulations, and the specific needs of healthcare providers and patients, my product is likely to fail.
Well, it can be argued that this is stuff that you can learn along the way, and that is true.
The learning curve is definetely steep (exacerbated by the fact that it is a new industry whose waters you’re wading through) but it is not insurmountable. However, the time it takes to acquire domain expertise can be a significant barrier to success, especially when the most important metric is how fast you can iterate and place a working product in the hands of users.
How important is domain expertise?
Domain expertise is crucial for several reasons:
Better product development: With domain expertise, you can develop a product that truly addresses the needs of your target customers. You can identify the pain points and design solutions that are tailored to those needs.
Faster iteration: With a deep understanding of the domain, you can iterate faster. You can quickly identify what works and what doesn’t, and make informed decisions about how to pivot or adjust your product.
Competitive advantage: Domain expertise can give you a competitive advantage. It allows you to understand The market better than your competitors, and to identify opportunities that others might miss.
Better communication: With domain expertise, you can communicate more effectively with your team, investors, and customers. You can speak their language and understand their concerns, which can help build trust and credibility.
How does one acquire domain expertise?
The most obvious way is through empirical learning, i.e learning by getting your hands dirty and building stuff.
But, there are other ways to acquire domain expertise:
Networking: Building relationships with industry experts, attending conferences, and joining relevant online communities can provide valuable insights and connections.
Reading: Reading industry reports, research papers, and news articles can help you stay informed about the latest trends and developments in your domain.
Mentorship: Finding a mentor who has experience in your domain can provide guidance and support as you navigate the industry.
Hiring: If you have the resources, hiring team members with domain expertise can help fill in the gaps in your knowledge and provide valuable insights.
Partnerships: Forming partnerships with other companies or organizations that have domain expertise can provide access to valuable resources and knowledge.
Customer feedback: Engaging with your customers and gathering feedback can provide valuable insights into their needs and pain points, which can help you develop a better product.
Just like the epiphany that Dr. Paul Kalanithi had in his memoir When Breath Becomes Air, while in a hospital, I am at that pivotal moment.
The pain of failure had led me to understand that technical excellence was a moral requirement.
— Dr. Paul Kalanithi, When Breath Becomes Air
The fear of failure should encourage any founder to seek domain expertise like it is a moral requirement.
Conclusion
While having a strong technical team is important, it is not sufficient for building a successful product.
Domain expertise is the moat that can protect your startup from competitors and help you build a product that truly resonates with your target customers.
By investing in acquiring domain expertise, you can increase your chances of success and build a product that makes a real impact in the world.