Book · Approx. 256 pages

Crossing the Chasm, 3rd Edition

Geoffrey A. Moore · HarperBusiness (Collins Business Essentials) Paid Intermediate

The whole worry in your question, that slicing smaller leaves too few buyers, is exactly what Moore's target customer characterization method is built to answer. His argument is that a smaller, homogeneous segment where budget already exists to buy is safer than a larger diffuse one, because word of mouth and references compound inside a tight group. Treat it as the source text behind most beachhead advice you will read elsewhere.

  • Characterize a specific buyer and use case before you count the market. If you cannot name who they are and how they buy, the segment is defined wrong, not just too small.
  • A segment with existing budget for your kind of product beats a bigger one you would have to educate for a year.
  • Dominating one small segment creates the references and cash flow that fund the move to the next, so narrow now does not mean stuck.

It answers 6 questions

  1. How do I tell the difference between a real trend and a passing fad?
  2. Is it smarter to ride a trend that's clearly rising, or to bet on a trend that hasn't started yet?
  3. How narrow is too narrow? I keep slicing my niche smaller and now I'm not sure there are enough buyers left.
  4. I'm building outside the big startup hubs and my 'market' is the small businesses in my own town. Is that a strength or a limit?
  5. Is it smarter to enter a market while it's still forming, or wait until demand is obvious and proven?
  6. What are the most common mistakes founders make when they try to build on a hot trend?

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