Even though modern legal technology solutions are still far closer to the advent stage than the apogee stage \u2014 considering both breadth and market share \u2014 there are still a number of areas of the market that remain uncovered.\u00a0 So, your first question should be whether someone else has already created what you want to create.\u00a0 If so, that someone has a \u2018first mover\u2019 advantage<\/a> that is often an essential precursor to subject matter domination.\u00a0 What is the Competitive Landscape for Your Product or Service?<\/strong><\/p>\n Of course, it\u2019s more likely that you\u2019ve done your homework, and won\u2019t be entirely surprised by a direct competitor.\u00a0 You\u2019ll likely know what your unique sales proposition is.\u00a0 So, now you need to find out how heavy the competition is in your specific product segment.\u00a0 Don\u2019t flatter yourself \u2014 you probably didn\u2019t come up with an entirely new idea.\u00a0 So, find out more about who is doing something similar and how they\u2019re doing it.\u00a0 Let\u2019s say you have created the best case management system ever.\u00a0 Well, I have good news, and I have bad news.\u00a0 I\u2019m glad you love your product.\u00a0 But, you should also know that there are about 3.4 billion case management systems available to lawyers, many with a decade\u2019s head start on yours, and with significant capitalization.\u00a0 If you want to compete in that market, you better be ready to spend \u2014 your own, or someone else\u2019s money.\u00a0 If you\u2019ve got fewer direct or indirect competitors, or competitors who are not capitalized, or who do not have viable routes to significant capitalization or who have obvious scaling problems, then by dint of simple math, your opportunity is better.<\/p>\n It may be that you have a direct competitor, but one that focuses on another industry.\u00a0 Even if this is a Goliath to your David<\/a>, that\u2019s not a dealbreaker, because you can access a first mover advantage for the legal industry, and that is part of your uniqueness.\u00a0 Of course, this is not a free ride<\/a>.\u00a0 It may be that said Goliath suddenly realizes an opportunity in the legal vertical, and dumps a load of cash all over your best efforts.<\/p>\n Are You Inherently Different from Your Ostensible Competitors?<\/strong><\/p>\n You may have direct or indirect competitors.\u00a0 And, you may not be deterred.\u00a0 Good for you.\u00a0 Now, ask yourself whether your product or service is inherently different from your competitors\u2019.\u00a0 I\u2019m not talking about a surface response either, like: we do the same thing, but our interface is soooo<\/em> much better.\u00a0 That doesn\u2019t cut it.\u00a0 Could you disrupt the legal research industry like Fastcase did<\/a>, by focusing on analytics and cutting traditional related staff costs in a way that Westlaw or Lexis couldn\u2019t or wouldn\u2019t?\u00a0 Could you bring one of the first cloud-based versions of a product to market and build a platform, like Clio has<\/a>?\u00a0 If you\u2019re establishing a staffing agency, where big players already exist, and where you want to make a big splash, will you embrace the virtual staffing model<\/a>, as other, more established companies lurch to do so?\u00a0 The question is not what makes you different, the answer is what makes you substantially<\/em> different.<\/p>\n Do You Know Enough About the Market to Answer the Right Questions?<\/strong><\/p>\n Market knowledge is important for any company that is settled upon focusing in on a particular industry.\u00a0 Like just about every vertical, legal has its quirks.\u00a0 If you\u2019re entering the legal arena without a specific idea of how lawyers work and how lawyers are sold, you\u2019ll have a significant learning curve in front of you.\u00a0 Law firms tend to be more tech-resistant than a layperson might expect, and they are also more cost-sensitive than the general public believes.\u00a0 Learning that at your peril will be painful.\u00a0 If you know the questions, you\u2019re halfway to passing the test<\/a>.\u00a0 If you have to figure out the questions, you allow your existing and potential competitors the time and space to catch up and overtake you, even if you acquire a first mover advantage otherwise<\/p>\n Do You Have Advisors with Industry Expertise or Knowledge to Help You Along the Way?<\/strong><\/p>\n And, here\u2019s the logical extension of that prior issue: If you don\u2019t have industry experience, you need to determine whether you want to learn it on the fly<\/a>, or whether a better play is to access industry experts \u2014 which itself can be managed in a variety of ways: You can add an industry expert to your team.\u00a0 You can add an industry expert as an advisor.\u00a0 You can add an industry expert to your board of directors.\u00a0 You can just ask lawyers, too \u2014 attorneys are often willing to help, and they don\u2019t pull punches<\/a>.\u00a0 If they think your product sucks, they\u2019ll tell you it sucks,<\/p>\n So, generally: endeavor to figure out whether your product sucks, before the market judges that it does.<\/p>\n About the Author<\/strong><\/p>\n Jared D. Correia, Esq. is the CEO of <\/em>Red Cave Law Firm Consulting<\/a><\/em>, which provides business management consulting services to law firms and bar associations.\u00a0 Red Cave also advises startup companies and existing companies wishing to reach the legal vertical.\u00a0 Jared is a recognized subject matter expert on law firm management.\u00a0 He is a regular speaker for local, state and national bar associations and lawyers\u2019 organizations and consistently writes for national legal publications, including this column for Above the Law.\u00a0 He prefers<\/em> James Taylor<\/a><\/em> and was in noticeably better shape before his kids were born.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" In Jared Correia’s inaugural column for Evolve the Law, he tees up the questions you need to ask yourself before launching a legal start-up, <\/p>\n","protected":false},"author":73229,"featured_media":3859,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2974,2395],"tags":[3277,2034,316],"class_list":["post-3857","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-technology","category-startup","tag-jared-correia","tag-law-and-technology","tag-start-ups"],"acf":[],"yoast_head":"\n![\"\"](\"https:\/\/abovethelaw.com\/wp-content\/uploads\/sites\/4\/2018\/07\/Start-up-300x200.jpg\")
Even if another company is six months ahead of you, the advantage they have in building a brand, building a team and acquiring funding, may be significant.\u00a0 If you start by lagging behind, you may stay there.\u00a0 And, if a direct competitor is far more established than that, the grade of your uphill climb<\/a> just increased significantly.\u00a0 Now, this is definitely something you should have researched before reading this column.\u00a0 And, if you have a direct competitor, who does the same thing that you do, you\u2019ll have to figure out a significant differentiation point \u2014 or maybe go see if you if you can get your old job back?<\/p>\n