First-Mover Advantage Is About Compound Interest, Not Market Share - ReadWriteStart
http://www.readwriteweb.com/readwritestart/2009/05/first-mover-advantage-about-compound-interest-not-market-share.php

f you move into a new space, the market normally takes as long as you do to mature enough to become really profitable. Keep your team focused, be patient, create value, test, test, test, and you'll get there. If your instincts are as good as you think they are, then it will come... if you can stick around long enough. Invest today.

"There is a fallacy that startups need to be super-secretive and then, when they launch, move very fast to capture the market. This is rarely true. Most startups would do well to study compound interest rather than market share."

Compound interest is about gains that are reinvested back into the asset base so that the next gain will be higher. The interest earns interest. The table below shows a new Web business at the very beginning, with only 100 wisdom points (a made-up term). The business is learning at a reasonable rate, with 10% growth in its useful knowledge each month. And, as you can see, its monthly growth in real units is growing; this is the compound interest. You get the idea.

First-Mover Advantage Is About Compound Interest, Not Market Share