Startup Blog

Don't Sell to the Wrong Customers

Posted by Mike Volpe on 12/31/06 3:23 PM

I was reading OnStartups, Dharmesh Shah's blog, and thought there were some really good comments about startups needing to find customers that are similar to each other is right on. Too many startups try to hedge their bets and be all things to all people, and end up spending a ton of time creating features and solutions to serve a large diverse group of customers and are really more of a consulting company than a product company.

Focus on a specific market segment, serve that one well, and then grow from there. Certainly, if you are a believer in the Innovator's Dilemma, then you will say that startups rarely begin with the right strategy and need to evolve business models over time, which is also true. However, this does not mean you pursue multiple business models at the same time. It means work hard on one model and one type of customer, and them make small changes over time as you get feedback from the market.

Mike Volpe

Written by Mike Volpe

Mike Volpe is a startup advisor and angel investor based in Boston.

Topics: strategy, startup

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