First-mover costs

Known in English as the Trailblazer Tax or Pioneer Penalty, this is an expense unique to first movers. Getting a business on track and making a profit in a new market requires a lot of investment and time. The burden of both is greatest on first movers, and decreases the more followers there are. Conversely, first mover advantages decrease, so determining the timing of entry is important. However, unless someone becomes the first mover, it is impossible to develop new markets or disrupt existing ones. By clearing mountains, digging tunnels, building bridges across valleys, and developing wasteland, those who follow can build cities and give birth to industries. Investing in first movers is a long-term game, but if successful, the returns are greatest, making it a real get-rich-quick gamble.