Regulations

A truly new industry starts unregulated. Sometimes a disrupted industry is also deregulated. This is supposed to bring stability and safety to the market place. While this is often true, the reason for the regulation is often because of a very imbalanced beginning, favouring an elite few early adopters.

Once regulations kick in, one of two things usually happen. Either the original early adopters get to keep a significant advantage or they try and level the playing field for everyone and restart the circuit. More often than not it will be the latter.

What this means is if entering or creating in a brand new industry, it is always important to remember that any outstanding first mover benefits will not last long. It is best to adjust expectations and prepare for a downturn caused by regulation much earlier.