Is your market large enough?

Was talking to an entrepreneur a little while he had bounced 2 ideas with me, and my feedback to both was they had a market size problem.

One was targeted to HNIs where ticket cost was very high. It was not only a small market in the grand scheme of things but the more money your prospect has to spend, the more time each transaction will take to close.

The other was targeted at startups, but I reminded him.. most startups die. In the early months at MoEngage where we had a lot of churn, but it was from startups that did not find Product-market fit and died, churn we could not stop.

Is the market profitable?

When you are targeting a market, do investigate if the market has the potential to pay. Startups that have received no funding, or have raised smaller rounds will be more frugal.