Narrow Marketplaces

Marketplaces can be built vertically targeting one sector or horizontally targeting multiple sectors. 

It’s best to start with a narrow marketplace focused on one vertical.

The cost of starting it is much less than a broad one.

By going narrow, you don’t have to generate a huge amount of supply.  

You can start with a limited supply and grow over time.

You can bootstrap the business model by providing services that don’t necessarily scale. 

You can provide premium services that build brand loyalty.

With a vertical approach, you can customize the product for the market more so than for a horizontal one.

With such a focus you can build a team that is more specialized to deliver that product.

While the target market may be small initially, over time you can expand into other areas.

Amazon began its business with the motto, ‘We sell books online.’

They later expanded into other areas.

 

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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.