A "one-trick pony" isn't enough

If you are like most entrepreneurs, you want to build a big company.  To do this, you not only need to have an initial product that you can develop without a ton of money, but also a product roadmap.  It might be sufficient for some to develop and market their widget (or service) and launch it on a website, etc., for everyone to see and buy, with no real vision of follow-on products.  This is often called a "one-trick pony."  Perhaps this is just fine for them.  This is a "lifestyle" business, in other words, one that is just fine for the entrepreneur, bringing in a nice paycheck on his profits, but not a good investment for an outside investor.  An investor needs to see an ROI on his investment, and a lifestyle business will most likely not qualify.  So, before you approach an investor, be sure to have a vision of how your company will evolve beyond your first product and clearly communicate this vision on a chart with a timeline.  Include costs of developing these future products and resulting market penetration.

On the Importance of a Market Niche

So you've just invented the greatest thing since sliced bread.  Who is your customer?  You say "everyone, of course."  "So how is your brand new start-up going to reach everyone?"  "Well, I'll advertise, I'll put it on my website, pretty soon everyone will know about it."  Well, this is a market strategy, but good luck.  You are going after such a huge market, it's tough to address, and it's tough to convince "everyone" that you have something special for "them."  Find who could benefit most from your invention.  Then customize the product specifically to address this particular demographic.  Then market specifically to them.  You'll have a better product for them, and they'll feel you have something special for them.  And then, it opens the door for a roadmap of future products for other target markets.  Now, you've turned your one-size-fits-all product into a roadmap of products, with something special for everyone and a market that is easier to reach.