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Nature of Adopters

While you might understandably be excited when your new business sells a product or service to its first customers, meeting the needs of just a few customers is often not enough for you to be successful as an entrepreneur. To be successful, you need to achieve broad adoption of your new products or services by the mainstream of the market. Without selling to the mainstream of the market, you are not going to be able to obtain sufficient sales volume to take advantage of economies of scale in production and distribution, making your cost structure uncompetitive in many contexts. This problem is particularly severe if you finance your new businesses with venture capital because their cost of capital virtually necessitates the reduction in costs and increase in margins that come from selling to the mainstream of the market.


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