Markets as Balloons

Today I was reading Seth Godin’s The Dip and in the last couple of pages he makes an analogy about (any) market that I found very interesting. He says that if you’re thinking about entering any market you should think about it like a balloon that you’re holding in your hand.

If your definition of the market is too loose there is no pressure in the balloon. A loose definition can mean not knowing exactly who you will target in the market, targeting a market that’s too broad and anything in between. He argues that you want to feel some “pressure” in the market so that you can have an impact on it in the same way that a balloon changes when you squeeze it.

If I understand Godin’s point correctly, finding a market were you can add some pressure is like being able to hold a balloon that’s inflated and that you can hold and squeeze. Having an inflated balloon make it something tangible and more importantly useful to you. Thus, having a well defined market that you can impact (inflated balloon) should be your main goal.

This is a weird short essay but I found his point quite interesting(: