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LC008: How do you break into a market with a high barrier to entry?


launchpeer - June 6, 2018 - 0 comments

Today’s question:

Today’s question comes from Adam and deals with market penetration and gaining traction. Specifically, how do you break into a market with a really high barrier to entry?

Jake’s answer:

Adam used a soda as an example. Penetrating a market of that size requires different strategies than something smaller, though the basic underlying principles are the same.

1. Focus

Your ideal customer and demographic must be clearly defined and you have to focus only on them.

2. Pre-planning

I don’t mean things like where you’re going to launch, etc. You need to find the people who are going to be your raving fans before you even launch. We went into some depth on this topic in this article from our blog: How we helped HOBA build a brand & prototype that led to over $1.2M in seed capital. I would encourage you to check it out.

3. Launch Small

It would tempting to think you have to launch in every city and target every market, demographic, etc. But that will hurt you in the long run. This is super important. Pick once city (the smaller the better) and succeed there first.

This will help you with validation as well as money. Starting small mean you don’t have to raise nearly as much funding. And once your idea is proven, it will be even easier to raise more funding to expand.

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