I just read Evan William’s post making the point that comparing different companies using a single metric (say unique visitors) is dangerous. He draws an analogy with rectangles, saying that anyone with half an education wouldn’t judge the size of a rectangle if they only knew the length of one side.
He then goes on to say (and this is my point today):
Most Internet companies would build better things and create more value if they paid more attention to depth than breadth.
Which echoes Peter Thiel in his recent book Zero to One, where he says that it’s better to own a small market than to be a bit player in a large one.
People are also making the same point when they advise entrepreneurs to focus on ‘doing one thing really well’ and when they extoll the values of having a small group of passionate customers.
All great advice. When I look at the companies we back they have, or strive to quickly find, a first group of customers that love their product, and then they build from there.