Breaking down the health and opportunities of a market. Finding the right fit for you and your industry could be pivotal for your company's success.
1. Small market, not growing
Selling or serving old technologies. There’s no story to get growth and it will be impossible to find venture dollar.
2. Large market, growth in the past
These markets are best left to large companies with more resources, as they can quickly deploy large teams and lots of capital to address whatever opportunity they see.
3. Small market, too early
Being early is the same as being wrong. Apply “Sam Altman test” of distinguishing fake trends wit real trends.
4. Small market, growing quickly
This is where your startup should be. The common thread in opportunities that are of this shape is that they are powered by either a shift in user behavior, a shift in technology, or both.
Find a market that is small enough but growing quickly.
Takeaways
Don’t waste time with small markets that are not growing
Large markets with all the growth in the past are extremely difficult.
You can be in small market where you think a lot of growth may happen, but might be too early. Being too early is the same as being wrong.
Try to find a market that’s growing quickly, enable by a technology or behavioral shift.
Thanks for reading.
-Edu
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