Entrepreneurial Tip #4: Segment your target market well

4. Thinking you’ll easily acquire millions of users 

Startups can be hugely overconfident in assuming the market is waiting for them and will accept them with open hands.

Thus, startups fail because they don’t correctly segment their target market.

They don’t consider the underlying needs of this segment and correctly balance the marketing 5Ps (Product, Price, Promotion, Place, People). Startups shouldn’t target the millions that might never use their product/service but rather the smaller handful who will enable them to better their proposition.

An easy thing to do is identify a few user personas for the product/service and understand their needs, beliefs, motivation, etc. This will enable them to better define the product, price it correctly and sell using the right promotion at the right place.

Innovify is an end to end digital product management company with a focus on startups. To learn more tips about avoiding the mistakes that startups make, read here.