Knowledge Marketplace
My First Million

My First Million

The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.

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Broad vs Deep Market Entry Framework

Reusability

A framework for choosing between targeting a massive market with moderate per-customer value versus targeting a smaller market with very high per-customer value extraction

How It Works

Broad approach captures small percentage of huge TAM (tens of millions of users paying moderate amounts). Deep approach captures high percentage of small TAM with extreme value extraction per customer

Components

1

Identify if market has tens of millions of potential users

2

Determine if users will pay significant amounts ($1000+ annually)

3

Calculate if even small market share yields large business

4

For deep approach: find markets where you can extract entire value chain

5

Assess competitive moats and defensibility for chosen approach

When to Use

When evaluating AI startup opportunities where you need to choose market entry strategy

When Not to Use

When market is neither large enough for broad approach nor valuable enough per customer for deep approach

Anti-Patterns to Avoid

Trying to do both broad and deep simultaneouslyUnderestimating the capital requirements for broad approachOverestimating willingness to pay in broad marketsNot having clear value extraction mechanism in deep approach

Example

Cursor targets broad market (30+ million developers) willing to pay $1000+ annually for AI coding assistance. Property management AI takes deep approach - buying entire firms and extracting full value chain rather than just selling software