Narrowly define your target user


Key points

Talks about entering existing market and the need to be 10x better (with examples)
Wealthfront's early features: (1) 10x lower cost relative to the traditional industry (2) built an investment portfolio (3) rebalanced the portfolio automatically (4) save you on taxes automatically. That was enough to carve out a few hundred early adopters who became obsessed
The roadster was (1) faster (2) cleaner (3) safer than the alternatives (Porsche) but, again, didn't have the bells and whistles of their competitors such as a fancy interior. But that didn't matter. It was 10x better on the dimensions the ~2,500 target customers cared about
Super narrow target customer is best practice (with examples)


At Wealthfront our initial target customer was an engineer at a pre-IPO tech company, typically between 25 - 35 years old, less than $1M net worth, and had a personal preference to delegate money management to a trusted 3rd party
Tesla sold roadsters to a very narrow band of ~2,500 people wealthy enough, risk-taking enough, and technology-forward enough, and who didn't care about interior specs or storage capacity to take the leap of faith to buy what could have turned into a $130k lawn ornament
If the target customer profile is too wide and the feature set to broad the startup is doomed from the beginning

What is good about it?

Very tactical and good examples