The Biggest Marketplace & Growth Mistakes

Max Brun discusses marketplace mistakes with a co-speaker. Consolidation on one side doesn't kill a marketplace: Instacart proved that. Focus on winning one narrow customer segment first before expanding, and invest in sales and partnerships instead of chasing a huge market.
Chapters
Are there any, maybe any misconceptions that you're seeing with the earlier stage kind of founders and teams?
We've kind of touched on the notes that I had written for this is we kind of already touched on. I think one is people worry that, you know, if one side of the marketplace is too consolidated, that the marketplace business model won't work. And sure, it does make it more challenging, but I think Instacart and others have proven that as long as, you know, there's value being provided via the marketplace element and then at least one side is fragmented, I think you can build a great business. So I wouldn't be too daunted by that. I think we talked about kind of thinking about investing in sales and partnerships as a good lever. So I would say those are 2 points. I think another one that I'm sure a lot of people know intuitively, but often forget is people focus a lot on TAM and like a big TAM and trying to go for a product that suits a large TAM. But I find that almost always focusing when you're an early stage startup on finding a small group of customers that you serve really, really well, where you can find customer love for a narrow use case is always better. And then drawing kind of concentric circles out from that. In terms of expanding your use case and expanding your customer segments, I think works really well. And honestly, I think that's the place that I've seen a lot of startups, even in the marketplace area, even ones that have grown a bit fail, is that they've taken on too much too fast and not focused on where their core advantage is and where the customer love is.
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