Another common question we get in Office Hours is about market timing. I feel this is one of the most underrated areas for an entrepreneur to focus on. In our Studio, we spend a lot of time evaluating both the market and the entrepreneur’s passion for the space. Here is why timing matters.

A rising tide lifts all ships

When you are in a fast growing market, the entire market is growing even if you are maintaining market share. With all the new customers, this creates natural growth (even with being on par with competition). This rising tide also creates a buzz that makes it easier to market and sell your product.

Option for exponential growth

When you select a market that is nascent, but you believe has huge potential you can be poised for something big. While early, you are tuning your understanding of the market, relationships, and solution. Then as the market starts taking off, you have a front row seat to being an early leader that is already prepared to capture the market versus a competitor that may be chasing what they now view as a hot market. Better to be early in a market.

Plenty of related opportunities

As part of a market that really takes off, that usually opens up lots of ancillary opportunities. It could be another product, a similar customer segment, or a new industry/geography. If you are already an early leader in the market, you can stay close to the market and continue to evolve your business to meet the growing market needs while others are catching up.

It is worth it to spend a lot of time early in customer discovery analyzing the market and thinking about the potential upside in that space.