How small business owners can escape price-driven competition by redefining their market and creating a new category instead of competing in crowded spaces.
Show Notes Page: https://www.thehowofbusiness.com/600-kevin-maney-create-your-category/
Many small business owners enter crowded markets and end up competing primarily on price. But according to author and business strategist Kevin Maney, there is another path: create your own category.
In this conversation, Henry Lopez speaks with Kevin Maney about the ideas in his latest book "The Category Creation Formula." The discussion explores how entrepreneurs can redefine the problem they solve and differentiate their business in ways that eliminate direct price competition.
Kevin explains that market categories exist primarily in the minds of customers. Businesses that successfully define a new category often become the default leader in that space and capture most of the attention and economic value. Rather than competing to be slightly better or slightly cheaper, the goal is to become meaningfully different.
Kevin introduces the Category Creation Formula: Context + Missing + Innovation = New Category
First, business owners must understand the context of how their customers' world is changing. Next, they identify what is missing in the current solutions. Finally, they introduce an innovation that solves that missing piece in a compelling new way.
The conversation also explores the importance of storytelling in marketing. Instead of starting with features or products, businesses should begin with the problem customers experience. When customers feel understood, they become more open to new solutions.
As Kevin explains: "It's better to be different than to try to be better."
Through examples ranging from laundromats in Brooklyn to dishwasher repair services, Henry and Kevin demonstrate how entrepreneurs can redefine a problem, create a new category, and stand out even in highly saturated markets.
If you're building or growing a small business, this episode offers practical insights into escaping the trap of competing only on price.
Kevin Maney is a bestselling author, longtime business journalist, and co-founding partner of Category Design Advisors, where he helps leadership teams define and lead new market categories. He previously co-authored the influential book Play Bigger, which introduced the concept of category design to mainstream business audiences. Kevin's writing has appeared in major publications including Newsweek, Fortune, Wired, USA Today, and The Atlantic.
This episode is hosted by Henry Lopez. The How of Business podcast focuses on helping you start, run, grow and exit your small business. The How of Business is a top-rated podcast for small business owners and entrepreneurs. Find the best podcast, small business coaching, resources and trusted service partners for small business owners and entrepreneurs at our website https://TheHowOfBusiness.com