Segment: Do Not Be the First Mover - Let Others Burn Money While You Learn From Their Mistakes

Summary

Konnected Minds Podcast with Derrick Abaitey

Episode Segment: Do Not Be the First Mover – Let Others Burn Money While You Learn From Their Mistakes
Release Date: June 20, 2026
Host: Derrick Abaitey
Guest: Investor/Entrepreneur (Name not provided)

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Episode Overview

In this thought-provoking segment, host Derrick Abaitey explores the importance of strategic patience in business, particularly within the African and Ghanaian context. The discussion pivots around why entrepreneurs should avoid the pressure of being the first to market—a “first-mover”—and instead, focus on learning from others’ experiences to make informed, less risky moves. The episode dives deep into funding mindsets, traditional versus modern investment frameworks, the myth of the unicorn startup, and culturally-rooted funding methods like Susu and apprenticeships.

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Key Discussion Points & Insights

1. Funding Mindsets: Traditional Trust vs. Silicon Valley Approach

• [00:34] Derrick opens with concerns from investors about young investees misusing funds, exemplified by those spending on travel instead of business.
• The guest highlights the shift from community trust-based funding (using land, produce, or reputation as collateral) to the modern Silicon Valley approach emphasizing data, proof, and documented plans.
  • Quote: “Initially in Ghana and across the continent... what was done was trust. I knew you, you knew me. I knew where you live, right... you use your land as collateral... But back then it was more of a trust currency.” — Investor/Entrepreneur [00:49]
• While some traditional frameworks still persist, their scale remains limited.

2. Susu & Community Capital Models

• [02:16] The guest explains "Susu"—a rotating group savings system common in Ghana and other African countries.
  • Quote: “Susu is more like collating people together; we contribute some amount of money and that money is collated and given in bulk to one person.” — Investor/Entrepreneur [02:23]
• Susu works on the basis of trust but struggles to scale beyond small, tight-knit groups.
  • Quote: “Fifteen people make sense... Fifteen hundred doesn’t make sense. Because it’s not scalable. How am I going to trust 1,500 people?” — Investor/Entrepreneur [02:48]

3. Apprenticeships & Community Investment

• Parallel drawn to traditional apprenticeship systems (notably among the Igbo), where youngsters work and learn from business owners for years, then receive seed capital to start their own ventures.
  • Quote: “You serve for five to seven years, and then the boss that you serve with, after that, they’re going to set you up... they help you set up your business...” — Investor/Entrepreneur [03:14]
• Like Susu, apprenticeships aren’t scalable to the broader population.

4. Adopting the Silicon Valley Framework

• Due to scalability challenges of tradition, many now adopt the Silicon Valley pitch-driven model.
  • [04:34] The guest walks through what’s needed: pitch deck and business plan.
    • A pitch deck is a visual summary of the business plan, often in PowerPoint form, including ten core elements.
  • Key Components of a Pitch Deck:
    • Problem, Solution, Market Size (TAM/SAM), Traction, Competitors, etc.
  • Quote: “While I’ve done a lot of consulting, I’ve realized that people leave some of these things out.” — Investor/Entrepreneur [05:17]

5. The Role of Competition—Why Not to Be First

• [06:30] Vital advice: if you claim to have no competitors, you likely haven’t researched enough.
  • Quote: “Even if you don’t have competitors, I would not go into any business that doesn't have competitors.” — Investor/Entrepreneur [06:32]
  • Reason: Competition validates the market.
• Being a first-mover incurs heavy costs, makes it easier for smarter entrants to learn from your mistakes, and exposes you to higher risk.
• Amazon Example: Amazon’s investors waited over 10 years for profitability, burning substantial cash—something most African startups can’t afford.
  • Quote: “Amazon had investors with them for many, many years... and they were still not profitable. Money was being burnt... You probably can't afford that.” — Investor/Entrepreneur [07:21–07:54]

6. The Unicorn Myth & the Value of ‘Zebra’ Businesses

• Derrick queries whether favoring proven models stifles local innovation.
• Guest believes true novelty is rare: “Personally, I don't think any idea is so new... Someone has probably thought of it.” — Investor/Entrepreneur [08:08]
• Critique of the “unicorn” obsession (companies valued over $1B) which stems from Silicon Valley narratives.
  • Quote: “Maybe you just need to be a zebra... something that is reachable, achievable in wherever you are.” — Investor/Entrepreneur [08:50]
  • Focus should be on solid, repeatable business models that solve local problems rather than chasing billion-dollar dreams.

7. Local Market Realities

• Total Addressable Market (TAM) is constrained in small countries like Ghana, while larger markets like Nigeria can support unicorns.
  • Ghana’s only unicorns are multinationals, not genuinely local.
  • Quote: “Ghana does have [unicorns], but they are not Ghanaian owned. They are multinationals.” — Investor/Entrepreneur [09:36]

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Memorable Quotes

• On traditional financing models:
  “Back then it was more of a trust currency... The chief gives you money or the elder in the community gives you the money.” — Investor/Entrepreneur [00:49]

• On the limits of scalability:
  “Fifteen people make sense... 1,500 doesn't make sense. Because it's not scalable. How am I going to trust 1,500 people?” — Investor/Entrepreneur [02:48]

• On the value of competitors:
  “When someone tells me that there are no competitors for what I'm building, I tell you that you haven't done your research enough.” — Interviewer/Host [06:30]

• On embracing ‘zebra’ businesses:
  “Maybe you just need to be a zebra... something that is reachable, achievable in wherever you are.” — Investor/Entrepreneur [08:50]

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Timestamps for Key Segments

• [00:34] — Investment trust in Africa and misuse of funds
• [02:16] — Explanation and challenges of the Susu model
• [03:14] — The apprenticeship system—opportunities and limits
• [04:34] — Why the Silicon Valley pitch deck is now standard
• [06:30] — The importance of competitors and market validation
• [07:21] — Case study: Amazon and the cost of being first
• [08:50] — The danger of chasing unicorns in small markets

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Key Takeaways

• In the African context, traditional trust-based funding was effective for small groups but doesn’t scale.
• The Silicon Valley investment model—pitch decks, business plans, and data—dominates modern funding, but comes with different challenges.
• Entrepreneurs should avoid being first movers, as this approach often leads to costly mistakes that later entrants can learn from.
• Focusing on local, scalable solutions tailored to the market is more sustainable than chasing “unicorn” ambitions.
• True novelty is rare; instead, seek to execute known models better, learning from existing competitors.

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This episode provides practical, down-to-earth advice for African entrepreneurs and anyone launching a business in emerging markets. The central wisdom: let others make the costly mistakes while you learn, adapt, and build something sustainable and local.

Transcript

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[Investor/Entrepreneur]

It needs to go into the business. So that's the mindset of the investors.

[Interviewer/Host]

I spoke with two grown men who had, you know, invested in other young people and one of them said that two of them use the money to travel abroad. Is this a genuine concern of some of the investors?

[Investor/Entrepreneur]

Yes. Yes. And because what people don't understand is, let me even ask you, before we started this Silicon Valley framework of getting funding, because what we're using now is what we call the Silicon Valley framework where you need to prove yourself before you get money. Initially in Ghana and across the continent. What was done was trust. So I knew you, you knew me. I knew where you live, right. You sell, you use your land as collateral, right. And then you go and ask the chief for money. The chief gives you money. And then when the chief gives you money, that's kind of what you use to do what you need to do. You can use the land as collateral, Right. And you can use your. If you're a farmer, you can use your future produce as collateral, right? So now what that means is that that was very doable. Right now we're using the Silicon Valley framework. We actually need you to prove yourself with data, with numbers, with every documentation possible. But back then it was more of a trust currency. So I would come to your place and I'll see it and I'll say, okay, I'll give you the money. So the chief gives you the money or the elder in the community gives you the money. Some of the frameworks are still being used till today. Right. But there's a problem. So let me talk about Susu.

[Interviewer/Host]

Okay?

[Investor/Entrepreneur]

Right. Susu is very good. People do. Susan.

[Interviewer/Host]

Sorry, what does susu mean for my non Ghanaian audience?

[Investor/Entrepreneur]

Okay. Susu is more like collating people together and then we contribute some amount of money and that money is giving, is collated and given in bulk to one person. Right. So we have numbers. So if you have 15 people, it probably be 15 weeks. Right?

[Interviewer/Host]

Right. We all collect the money.

[Investor/Entrepreneur]

Yes.

[Interviewer/Host]

And then we say, okay, today, let's give it to Diane Yes. And then the next time we all collect it and then give it to Derek.

[Investor/Entrepreneur]

So. Yes. So you pay weekly. Right. And this, this framework has been in existence for a very long time. But you know what the problem is? It's not scalable. You know why? Because when 15 people is a trusting, it's a trust. We trust the 15 people. I know, you, you know somebody you brought, this person you brought. So you're vouching for people, right? So 15 people make sense. 20 people make sense. 1500 doesn't make sense. Okay, right. Because it's not scalable. Because how am I going to trust a thousand five hundred people? It's going to be really hard to manage. Yeah, right. Same thing. I'm going to make reference to apprenticeship. Right? Apprenticeship existed way before where even when you trace it back to the Igbo Kingdom, right? The Igbos up to today, they still do that. You serve for five to seven years, and then the boss that you serve with, after that, they're going to set you up. So they give you seed capital, they help you set up your business, and they give you some money to go and start your life.

[Interviewer/Host]

A lot of the churches even use this method, right? Yeah.

[Investor/Entrepreneur]

Right. And the thing is, again, it's not scalable. How many people can one person take? How many people are even doing this apprenticeship thing? It's not scalable. Can we do 50,000 people? Can we give 50,000 people access to funding this way? It's not scalable. So now the problem is that because these things are not scalable, we've had to adopt other frameworks because we have

[Interviewer/Host]

evolved, which is why the Silicon Valley framework.

[Investor/Entrepreneur]

Yes.

[Interviewer/Host]

Can you explain that to us?

[Investor/Entrepreneur]

Okay, so when, from Inception, you need. I'm going to talk about your pitch deck, right? Pitch deck. You need a pitch deck. You need a business plan.

[Interviewer/Host]

Okay?

[Investor/Entrepreneur]

Right.

[Interviewer/Host]

What is a pitch deck? What is a business plan?

[Investor/Entrepreneur]

Okay, so a pitch deck is a summary, a visual summary and emphasis on visual summary, a visual summary of your business plan. Okay, So a pitch deck is just a document that's more like a PowerPoint presentation that is showing all the information about your business. So there are 10 things that actually go inside the pitch deck. Right? Because while I've done a lot of consulting, I've realized that people leave some of these things out.

[Interviewer/Host]

Okay, what are the 10 things?

[Investor/Entrepreneur]

So, problem. Okay, so the problem that you're trying to solve, the solution, the market size. Okay. And so you see things like Tam, Sam, some frameworks, right? And this is just to show how Big. The market you are in is. And we go to traction. Okay. So when you started, whatever you have in hand right now, what is attraction? How. And traction means different things for different people depending on the industry that you're in. Traction could mean you have a wait list. Traction could mean that you have active people buying from you already. Traction could mean different things for different people depending on the industry that you're in. We go to so market size, traction, and then we go to competitors. Right. You. You have to do your competitor analysis in every industry. When someone tells me that there are no competitors for what I'm building, I

[Interviewer/Host]

tell you that you haven't done your research enough.

[Investor/Entrepreneur]

No. And even that if you don't have competitors, I personally would not go into any business that doesn't have competitors.

[Interviewer/Host]

Why?

[Investor/Entrepreneur]

Because the market is not validated.

[Interviewer/Host]

But you could be the first person validating that.

[Investor/Entrepreneur]

You could, but that will cost you more.

[Interviewer/Host]

Right. And it becomes a lot more difficult to get.

[Investor/Entrepreneur]

Exactly. And then you know what happens? People can copy you and make it better. Huh? Because I learned from your mistakes. Right. And that's why you do competitor analysis. I look at what you're doing that I'm not doing. I look at where you're lacking in something and I improve on that. I would rather that than be the first person coming into the industry and I have to burn a lot of money. You can look at the story of Amazon.

[Interviewer/Host]

Okay, talk to me.

[Investor/Entrepreneur]

Right? Amazon had investors that were with them for many, many years. Over 10 years.

[Interviewer/Host]

Right.

[Investor/Entrepreneur]

And they were still not profitable. And these at this time, money was being burnt. Right. You probably can't afford that. You are in Ghana. You are somewhere. You have something small you want to start. You don't have the. You want to be the first person that came up with this thing. It's going to be very difficult because it can be capital intensive depending on the industry.

[Interviewer/Host]

I get it. Doesn't that also mean that we are going to be importing a lot of ideas instead of solving our own problems? Because some of the problems we may have.

[Investor/Entrepreneur]

Yes.

[Interviewer/Host]

There may not be competition as such.

[Investor/Entrepreneur]

Right.

[Interviewer/Host]

Locally. Locally.

[Investor/Entrepreneur]

Personally, I don't think any idea is. Is so new.

[Interviewer/Host]

Right. Novel in its nature.

[Investor/Entrepreneur]

Yes. People, it's something that someone has probably thought of. Someone has done something little. You probably haven't seen it yet. When I decided to start building something is when I realized that, oh, people are actually building similar things. Right. And they'll reach out to you and all of that. So you get to find out what people are doing. But the thing is, honestly speaking, if you see, our problem is that I took this concept from Vousi. The problem is that we're all trying to be unicorns. We're trying to build the rare one, one in a lifetime, the one billion dollar idea.

[Interviewer/Host]

And a unicorn is.

[Investor/Entrepreneur]

A unicorn is a company that is valued at over $1 billion. Right. And people want to be unicorns. Right. Or maybe you just need to be a zebra. You need to be something that is reachable, achievable in wherever you are. I'm not saying that unicorns are not achievable. They are. But do you have the capacity to get to that point and sometimes to.

[Interviewer/Host]

I guess that's where the TAM comes in. Right. And TAM is total addressable market.

[Investor/Entrepreneur]

Yes.

[Interviewer/Host]

We may not have that in a small country like Ghana, but Nigeria may have it. South Africa may have it.

[Investor/Entrepreneur]

Yes.

[Interviewer/Host]

And that's the reason why in Nigeria they have, I think they have about five or six unicorns.

[Investor/Entrepreneur]

Yes.

[Interviewer/Host]

Ghana doesn't have any.

[Investor/Entrepreneur]

No. And actually Ghana does have. But they are not Ghanaian owned. Okay. They are multinationals.

[Interviewer/Host]

Right? Right.

[Investor/Entrepreneur]

And so when we count, when we count, we don't count them because they're not. They are multinationals. But the problem is that because we're chasing this unicorn framework, Silicon Valley, because this, all this came from Silicon Valley. Right. And so everybody wants to build a billion dollar tech company. A billion dollar. Maybe what you need to do is solve a little problem that actually has consistency. Connected Minds Podcast

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