People have problems in their lives. Us as entrepreneurs solve these problems.
A question that arises as an entrepreneur: Is it better to build a product that...
solves a big problem pretty good for lots of people (so reaching a large market)
solve one small problem and solve it really well for a smaller number of people (reaching a smaller market)?
Lets get into it.
Toggl is the perfect example for me to explain this concept.
Toggl is a time tracking web/mobile app for teams/individuals to keep track of how much time is spent on what tasks.
To be honest, Toggl made me laugh the first time that I went to their website. When I thought about their product I thought, "all you do is track time. There are other products that do time tracking...and much more. So do you really just do time tracking?"
Toggl just seemed too simple to me. Why would I use Toggl if other services do time tracking and other features as well. In fact, I use FreshBooks for my small business accounting services and they include time tracking into their product. Again, why would I use Toggl when my own accounting service already uses it along with other services like it.
After using Toggl for a couple weeks, I signed up as a paying customer...
Why I decided to pay.
Toggl knew there was a problem: teams of people had a hard time tracking time. They solved that problem to the very best of their ability. Seems like a simple problem, but wow they have solved it better then anyone else by far. Web and mobile apps, simple and attractive interface, great reporting system, and an outstanding Chrome extension. Again, they solve the problem to the best of their ability.
One more thing. Remember when I mentioned Toggl is only solving a small problem compared to other services out there such as FreshBooks? ...Toggl imports/exports data with FreshBooks... Boom. No need to be an all in one solution.
I am a believer that it is better to...
...create a solution for a small number of people to the very best of your ability over creating a pretty good solution for a large number of people.
People decide to pay for a product when the value they receive from the product exceeds the cost they will pay for it. Products that truly improve your life are worth paying for. A minimal number of people will hand over their credit card number for a product that gives them minimal value then one that delivers a great amount of value.
In fact, the blogging platform you are reading this post from right now.
A few years ago I was searching all over the net trying to find the perfect blogging platform. I tried around 10 different platforms and still did not find one that I felt happy with. At this time Ghost was going through their Kickstarter and it became successfully funded. They have created the most amazing blogging platform that no one comes close to. If you are looking to start a new blog, use it. I <3 Ghost. They have solved the problem of me wanting to share my thoughts online to the very best of their ability and it shows.
Just another quick example of a service that solves a problem to the best of their ability.
Pick one small problem and solve it better then everyone else. Your users will fall in love with you as you improve their life and they will become customers.