Why early stage startups should start narrow

Excerpt from Building Products by Julie Zhou:

If you are a start-up founder, your path will be easier if you go after a problem for a narrowly-defined audience, and then expand to broader audiences after you have some initial traction.

From an email I sent to a startup founder:

To maximize your chances of success, focus on a single vertical, and go deep into it.  There are two reasons for this:

1. If you focus on a single vertical, it’s much easier to understand the customers’ Job To Be Done, the solutions they currently use, how you can help them the most, and then to build a product that addresses their needs.

2. As a small startup, you don’t have the resources to compete with broader platforms; but you can win by specialized domain customization, and expand from there.

Choosing a vertical is a question of research, and should not involve any product development. Sit with customers in each vertical you’re considering. By asking them questions about their Job To Be Done you’ll be able to reach a conclusion about which vertical you can add most value in. Then focus all your effort on that vertical.

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