Question

How do I find my target market?

How to find your startup's target market: the four-step process to narrow from category to a specific buyer you can name, count, and reach.

TL;DR

Narrow in four passes. (1) Start with the broad category your idea sits in. (2) Filter by buyer behavior: who currently has this problem and is doing something about it? (3) Filter by reach: who can you actually contact via the channels you have today? (4) Filter by willingness to pay: who has budget authority and a price point that clears your unit economics? The output is a specific buyer profile you could name 10 people who match. If you can't, you haven't narrowed enough.

The fast version

Narrow in four passes. Each pass cuts your audience by an order of magnitude until you have a buyer specific enough to name 10 actual people.

PassFilterCuts ~10x
1Category”All knowledge workers” → “Software founders”
2BehaviorWho has this problem and is doing something about it today
3ReachWho can you contact via your year-1 channels
4Willingness to payWho has budget authority + your price clears their threshold

Output: a buyer profile you could write down 10 names of real people who match. If you can’t write the names, you haven’t narrowed enough.

Why narrow first

The instinct is to pick a broad category to maximize TAM. The problem: messaging, channels, pricing, and onboarding all have to fit a specific buyer. Broad targeting forces all four of those to be generic, and generic loses to specific.

The pattern across successful startups:

  • Slack started with internal tech teams (not “all knowledge workers”)
  • Stripe started with developers (not “all businesses that need payments”)
  • Notion started with personal productivity / small teams (not “all collaboration software users”)
  • Figma started with product designers at tech companies (not “all designers”)

Each expanded from a narrow beachhead. None started broad and narrowed. Narrow is how you get traction; broad is what you become at scale.

How to run each pass

Pass 1: category. Start with the obvious one. “Project management software.” “Email tools.” “Design software.” This is the broadest version. You’ll cut from here.

Pass 2: behavior. Who currently has this problem AND is doing something about it? “People who manage projects” is too broad. “People who currently use Asana / Trello / Linear and complain about [specific thing] in public” is narrower and more useful. Behavioral filters are stronger than demographic ones.

Pass 3: reach. Who can you contact in year 1 with the channels you have? If you’re an indie hacker on Twitter, your effective reach is people who hang out on Twitter, indie hacker communities, and your warm LinkedIn network. If your buyer is enterprise IT in healthcare, you have a reach problem; either fix the channel (rare for early-stage solo) or pick a different buyer.

Pass 4: willingness to pay. Who has budget authority and a willingness to pay at your candidate price? A persona that loves your product but has to ask their boss for $19/mo is a longer sales cycle than a persona that can charge it on a personal card. For founder products: solo / individual buyer authority is gold.

What the output looks like

Bad: “Founders.” (Pass 1, no further narrowing.)

Better: “B2B SaaS founders running pre-seed startups in Europe who’ve raised but haven’t shipped, currently using a mix of ChatGPT and Notion to figure out what to build, frustrated that neither produces a defensible answer.” (All four passes.)

The second version:

  • Names a category (B2B SaaS) and stage (pre-seed)
  • Names a behavior (using ChatGPT + Notion, frustrated)
  • Implies reach (Twitter, IndieHackers, niche European founder communities)
  • Implies willingness to pay (raised = budget exists)

You can write 10 names of people who fit the second version. You can’t write 10 names of “founders.”

How ShipFit handles this

ShipFit’s stage 2 (Who Pays?) takes you through the four passes. The system refuses to advance to stage 3 (What Hurts?) until your buyer is specific enough that the next stage’s interview questions will produce useful data.

The output is a Buyer Persona Canvas populated with the 5 Rings of Buying Insight (Adele Revella, 2015): priority initiative, success factors, perceived barriers, buyer’s journey, decision criteria.

Further reading

Related

Frequently asked questions

Why is 'everyone' the wrong target market?
Because 'everyone' is unreachable, unmeasurable, and the messaging that works for 'everyone' resonates with no one. You can't run a single ad campaign that converts 'everyone'; you can run a campaign that converts a specific buyer segment. Targeting everyone is the same as targeting nobody.
How narrow is too narrow?
When the buyer count gets below ~500-1,000 reachable people, you may struggle to get to meaningful revenue without 50%+ market share, which is a hard moat to build. Practical floor: ~2,000 reachable buyers in your year-1 SAM. Below that, broaden one criterion (geography, role, company size) until you're back above 2,000.
What if my idea works for multiple segments?
Pick one to ship first. Multiple segments mean multiple GTM motions, multiple message variants, and multiple onboarding flows; all triple at minimum your engineering and content load. Most successful startups expand from one segment outward, not three segments simultaneously. The other segments are V2.
How do I count my target market?
Crunchbase for company-side filters (industry, stage, funding, geography). LinkedIn Sales Navigator for role-side filters (job title, seniority, company size, location). Trade-association directories for niche professional segments. The count is the year-1 ceiling on your customer base; it determines whether your SOM math works.
Should I pick the biggest segment or the most enthusiastic one?
Most enthusiastic, almost always. The biggest segment is usually the hardest to displace incumbents in. The most enthusiastic segment is one you can win quickly, build retention with, and use as a beachhead to expand from. Slack started in tiny tech teams, not enterprise IT. Stripe started with developers, not enterprise finance. The pattern is consistent.
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