Small to Large Markets

Today, we’re talking about your market size.

Many startups begin in a small market — $4b or less — either naturally or by focusing on a niche. But remember when talking to investors, you must paint a clear path from your current small market to a much larger market.

Plenty of founders will be comfortable pitching their small market’s virtues and a plan to monopolize it. Investors rarely buy this. They’d rather you be a smaller player in a bigger market.

Some common things you can suggest as your access points to those larger markets: distributing your product globally, adding more services — taking you to different, larger markets, or charging customers more because you’re underpriced now or you move to a customer profile that can pay more.