Founders often mistakenly start with low-margin, mass-market products (the "save the whales" syndrome), which makes the business look damaged. A better strategy is to start at the high end with less price-sensitive customers. This builds a premium brand and generates the capital required to address the broader market later.

Instead of lowering prices to capture a wider audience, Scarlet Chase embraces a high-end niche. The founder's philosophy is that diluting the product's quality for broader appeal is a mistake. The strategy is to deliver exceptional value to a focused group of customers who can afford and appreciate the investment.

Committing all resources to a single demand trigger is a post-product-market fit move. Early on, founders need a broader approach to discover the repeatable patterns of demand. Only after identifying this pattern from early customers can you confidently build a concentrated "tollbooth" around it.

Niching down allows you to dominate a small pond with less competition, enabling higher prices and faster learning. Once you're the "biggest guy in a puddle," you use your acquired skills and resources to graduate to a pond, then a lake, and finally the ocean.

Dara Khosrowshahi argues that entrepreneurs over-index on Total Addressable Market (TAM), which he sees mainly as a fundraising tool. The real focus should be on proving product-market fit and solid unit economics in a small, defensible niche. Once that's established, you can expand into adjacent markets.

Although Moonshot AI's platform can optimize any digital experience, the company deliberately targets only e-commerce as its initial market. This "laser focused" beachhead strategy allows the early-stage startup to concentrate resources and build a strong foundation before expanding into other verticals.

Focus on a single, highly specific product that solves a clear problem for a niche audience. This 'spearhead' product can effectively acquire your first customers and power your advertising, even as you later expand your product offerings to a broader market.

Instead of a broad launch, Everflow targeted only mobile affiliate networks—a small market they knew deeply from their previous company. This allowed them to build very specific, high-value features for that ICP, win deals, and establish a strong beachhead before expanding into larger, adjacent markets.

Don't fear competitive "red oceans"; they signal huge demand. The winning strategy is to start in an artificially constrained niche (a puddle) where you can dominate. Once you're the biggest fish there, sequentially expand your market to a pond, then a lake, and finally the ocean.