Subscribe to feed
Beautiful Evidence
The Art of the Start
The Bootstrapper's Bible (eBook)
The Business of Software
Guerrilla Marketing
Starting Small is not Dreaming Small
There is a temptation to go big fast, a temptation that is reflected in the excitement over enterprises that grow to get a lot of (at least nominal) users in a matter of months covered by TechCrunch and the like. This focus on getting big through immediate broad-based consumer adoption is antithetical to building a sustaintable business. Some do get lucky this way, but the likelihood of having the right “thing” for everyone the first time out is really small.
In Dharmesh Shah’s always-insightful blog, he discusses the importance of limiting scope in Startup Success: The Phenomenal Force Of Focus. He makes a lot of good points, but I would like to emphasize one in particular that addresses the fears of many who want to change the world:
Restrictions Are Not Permanent: Just because you start with a narrow niche and focused strategy does not mean you have to remain there for all eternity. It’s simply a better way to start a company because it makes the early stuff so much easier. As the company evolves and you learn more and more about the market, you can decide whether you want to go broad (i.e. tweak the product to meet the needs of another segment of customers) or go deep (build more products/features that serve the needs of the customers you already know). The point is, don’t convince yourself that you have to widen your potential market now – because you don’t. In most cases, you’re better off starting narrow and broadening later.
Well said. Have a big plan long-term, but short-term be really focused on a limited set of objectives - and I posit this means a very limited market. Small segment, well-defined need, and win the hell out of it. Then move on to adjacent markets. (I like Geoff Moore’s Bowling Alley Strategy from Inside the Tornado, as it leads nicely to a broader adoption model later on.)
There are those who will say that everything is different on account of the many internets, but I am not so sure. Even if SMBs, VSBs, and consumers are the future innovation starting points, (as opposed to large enterprises), picking limited segments within those categories is still going to be very important to reliably achieving a win.