Target Market Selection for Founders
Why Founders Target Familiar Markets
Past observation: Why do we always target the same group of people? (25-35, office workers, internet-native)
Realized it makes sense because this group is:
- Most mobile/internet native — can adopt easily
- Most approachable — you can actually reach them
- Most familiar — you understand their pain points
Same pattern with "young founders building for founders, investors, freelancers."
The Familiar vs Unfamiliar Trade-off
Familiar markets:
- Faster feedback loops
- Lower distribution cost
- Deep empathy, less risk of building wrong thing
- But: crowded, echo chamber risk, competing with 50 other apps for same 10k users
Unfamiliar markets:
- Underserved precisely because fewer founders know them
- Higher switching cost once you're in (moat)
- But: harder to access, slower to learn, easy to build wrong thing
Challenge to "quick feedback" argument:
- Fast feedback ≠ good signal. Friends share your assumptions, might be too nice.
- Limited resources is actually an argument AGAINST crowded markets — can't outspend incumbents.
- Access is learnable, taste isn't. Can spend 3 months in a new industry. Can't easily manufacture contrarian insight in saturated space.
- Survivorship bias: We remember Notion, not the 500 dead note-taking apps for knowledge workers.
Solutions for Navigating Market Selection
Adjacent markets, not foreign ones — One step away from what you know. Some access, some empathy, less competition.
Follow a person, not a market — Find one champion user with a burning problem. They become your access point.
Earn the right to an insight — What do you know from your specific experience that most founders don't? The market follows the earned secret.
Constraint-based filtering — Pick business constraints (B2B vs consumer, self-serve vs sales-led, price point) to narrow the space without knowing the "right" market.
Time-boxed tours — 2 weeks each exploring 3 markets. Talk to 5 people in each. Feel the difference between "interesting" and "I understand this."
Market Adoption Patterns
Three main patterns for how tools spread:
Pattern 1: Pro → Mass (top-down)
Start with experts, simplify later.
- Figma (senior designers → everyone)
- Linear (senior eng teams → more teams)
- GitHub (developers → broader)
Why it works: Pros validate quality, set taste, become evangelists. Credibility before expansion.
Pattern 2: Mass → Pro (bottom-up)
Start simple, add power features.
- Canva (non-designers → competing with Adobe)
- Notion (personal → teams → enterprise)
- Dropbox (individuals → enterprise)
Why it works: Users bring it to work. Grow with them.
Pattern 3: Democratize Pro Tools
Make expert tools accessible to the middle.
- Webflow (code-level control without code)
- Stripe (payments without enterprise deals)
- Shopify (e-commerce without dev teams)
Why it works: Huge underserved middle — people who want pro results without pro overhead.
How to Choose Your Pattern
Go pro-first when:
- Stakes are high — Mistakes costly (finance, security, healthcare). Need expert validation.
- Credibility is the product — Output needs to be trusted. "Used by top designers" matters.
- Complexity is unavoidable — Workflow requires learning. Pros invest time; casual users won't.
- You need revenue early — Pros pay. Consumers expect free.
Go mass-first when:
- Network effects are core — Tool gets better with more users (communication, marketplaces).
- Virality is built in — Users naturally share or invite (Calendly, Loom).
- Core value is instant — No learning curve. Value obvious in 30 seconds.
- You can monetize at scale — Freemium, ads, or cheap seats that add up.
Go "democratize pro tools" when:
- Clear gap exists — Pros have tools, everyone else has nothing.
- Complexity can be abstracted — Hard part hidden behind good UX.
- Price is the barrier, not skill — People want pro results, can't access pro tools.
The founder-fit lens:
- Can you actually reach and sell to pros? Do you have credibility?
- Can you build for mass distribution? Do you know how to grow consumer products?
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