That’s what a friend told me recently, and it’s a great point. He said a big and growing market will support a million mistakes as you build your start-up.
It’s similar to what Jonathan Rosenberg said a few months ago: better to be a smaller slice of a big pie than a bigger slice of a small pie.
3 comments on “When In Doubt, Start a Company in a Big and Growing Market”
Scott Shane gave similar advice in his book The Illusions of Entrepreneurship.
Are there any particular resources you guys use to research how much a market is actually growing?? Just curious.
This remind me of a point Marc Andreessen makes about determining the most important driver of start-up scuccess: product, team, or market.
He argues market.
“In a great market — one with lots of real potential customers — the market pulls product out of the start-up.”
A VC named Andy Raleff makes a similar point.
When a great team meets a lousy market, market wins.
When a lousy team meets a great market, market wins.
When a great team meets a great market, something special happens.