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Ben Horowitz: Every Great Tech Company Does Exactly Two Things

By Ben Horowitz · AI & Technology · 1 min read

Forget business models. Forget marketing. Horowitz says every great tech company that has ever been built comes down to two things.

Key Points

You must build a transformational product that is way better than what exists
You must take the market — having the best product means nothing if you don't win
Big companies can hire, train, sell, and market — but they cannot innovate

You can come up with the best product, but if you don't win, you really don't have a company.

Two Things. Every Time.

Horowitz: "What do you need to build a new technology company? There's really two things that are very consistent with every good one that's ever been built. Number one, you have to build a transformational product. Number two, you need to take the market."

A Product So Good It Forces Change

Horowitz: "There is no way to build a great new company without a great new product. Microsoft, IBM, Hewlett-Packard — they can all hire people, train people, sell, market. What they all have trouble doing is innovating. Coming up with something truly new, truly transformational."

Horowitz: "It's got to be way better than what's out there or way better than the current way of doing things. If you have that, then you have a chance of building a company around it. Without that, you're not going to get anywhere."

Microsoft, IBM, Hewlett-Packard — they can all hire, train, sell, market. What they all have trouble doing is innovating.

The Product Is the Main Thing

Horowitz: "You'll hear a lot of people say what's really important is a business model, or marketing, or this or that. But what's really important is the product. That really is the main thing."

Horowitz: "If you look at the great technology companies, the thing that distinguishes them is the ability to keep coming up with a better way of doing things."

You'll hear people say what's really important is a business model, or marketing. But what's really important is the product. That really is the main thing.

Win the Market or It Does Not Matter

Horowitz: "You can come up with the best product, but if you don't win, you really don't have a company. Most of the technology business are network effects businesses. You have to win."

Horowitz: "If you're an engineer, what business skills do you need? They're all around the skills you need to win the market. How do you out-market, out-sell, and beat the competition? That's ingredient two."

You can come up with the best product, but if you don't win, you really don't have a company. You have to win.