target-market, launch, market-sizeIt is widely believed that a startup should launch targeting a really small target market, conquer that market than expand.
What should be the size of that really small market? Considering its a b2c or c2c platform.
Size should be large enough on its own, that if the company controlled that niche in the market, it would be enough to breakeven and return a profit of more than 10% after three to five years. This is not easy to do, but insures the company’s focus if needed from day one is sustainable.
I would say that it depends on your funding and Product. If your plan is to make THE NEXT BIG THING, then your initial market should be huge. After all you want to get everyone buying your “Next Big Thing” and not a competitors copy (which will surely follow yours).
If you are making something that you know is not “The Next Big Thing”, and will have a limited audience, then be aware that this will probably require less financial backing (or at least it should, chances are you’ll make less on this), and you are less likely to be copied quickly.
The Bottom Line is if your idea is going to be copied by one of the big companies soon after you’ve made your product, then get it out there to EVERYONE before the big boys horn in on your turf. Just be aware that this will require bigger routes to market and more investment.
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