Start small then monopolize
The only companies that have a high-profit margin, that can invest in innovation are those who have a strong position on the market, by not competing directly with other companies. Like Google or PayPal. The companies that are on a very competitive market, for example, are French airlines or the British restaurant in Palo Alto.
Instead of competing in an existing market, find a way to make your company truly different.
This means, that no one will thread your position on the market and you will not have to fight for every customer.
Choose a small market that really needs your product.
Don’t try to market your product to people that don’t really need it.
Aim to achieve a monopoly.
Don’t aim to get 1% of a big market. Or even worse, 1% of a market that is already dominated by the competition. This does not work.
Once you dominate one niche market, it’s time to scale it up to other markets/niches.
Remind yourself not to disrupt.
There is a trend in silicon valley to disrupt everything. However, it’s connected to unprofessional work, or threatening existing companies, which can easily destroy you.