8 Reasons Startups Fail | #6: Casting a wide net


#1

From Forbes in 2012:

If your target audience is too vast, your idea isn’t going to last. The best startups locate their niche as well as a small target audience, which makes marketing much easier and cheaper. For example, perhaps I’ve decided to create a product for writers. Imagine me trying to reach every writer in the country—a huge undertaking.

It’s easy to forget how difficult reaching a global market can be, especially for young companies. Constructive criticism can quickly become negativity. But Soylent was never the “easy” product. If the company was interested in getting rich there is plenty of useless crap they could barely alter and slap their brand on.

Common sense is less apparent when manufacturing and distributing something on such a grand scale. Mistakes are going to be made. Prices are going to fluctuate. Building businesses is not down to a science, not yet anyway. If a bank were to grow an international customer base in a few years with virtually zero hiccups it would be incredibly suspicious, not inspiring.

I know I’m probably in the minority here but it’s going to take a little more than “3 strikes you’re out” to make me write off Rosa Labs as a scam.