Room For Value

In the past seven months, I've been fortunate to see hundreds of pitches and ideas from aspiring entrepreneurs. Most of the time, they are not pitching to me, but a prestigious panel of venture capitalists or angel investors. The panel asks the entrepreneur many questions about their business model, team, and strategy (see 10 questions angel investors ask). 

One question that is among the frequently asked is, "is there a market for this product?"  Investors want to know the market size and what companies are already serving this market. If there are few or no competitors, someone will usually say, "this must not be a very good market." Yet, if there is a very crowded market, another investor will usually say, "this market is too crowded."

The entrepreneur is at a loss either way he or she approaches answering the question regarding market. But, crowded or deserted will not determine if your idea will be successful-- your product will be a success if you are able to provide large amounts of value.

The goal of an entrepreneur should not be to go after the biggest market possible, but the most underserved. If you provide value, you'll always find room in the market.