Bootstrap Your Network: The Importance of Starting with a High Value Niche Use Case

Bootstrap Your Network: The Importance of Starting with a High Value Niche Use Case

When it comes to starting a startup, it's important to focus on the right things. According to Jessica Livingston, startups should focus on sales rather than marketing. This means talking to a small number of users who are seriously interested in what you're making, not a broad audience who are indifferent. Startups that start narrow and deep are more successful because they choose a very interested audience, and the product is still being defined. This approach was taken by successful startups like Airbnb and Stripe, who signed up users manually at first. Focusing on the narrow and deep end of the sales/marketing continuum is not just the most effective way to get users, it's also essential for the survival of a startup.

Another important element of starting a successful startup is finding the right use case. According to AVC, if you want to bootstrap a peer to peer network, you can't start with the mainstream use case. You need to start with the highest value use case, even if it is a much smaller niche. This is what Waze did with its original use case of reporting speed traps in real-time. By starting with a high-value use case, you can win the hearts and minds of a small user base and have the opportunity to go mainstream later on.

Startups that aim for the mainstream users first are setting themselves up for failure. It's important to find the use case that is high enough value that some people will do things that most people won't. This was the case with Snapchat, which was initially made fun of for being a "sexting" app. This high-value niche use case bootstrapped the network and allowed Snapchat to go mainstream later on.

In conclusion, starting a successful startup requires focusing on the right things and finding the right use case. Startups should focus on sales rather than marketing and talk to a small number of users who are seriously interested in what they're making. They should also start with a high-value niche use case to win the hearts and minds of a small user base and have the opportunity to go mainstream later on. By following these principles, startups can increase their chances of success and avoid failure.