Why Most Great Ideas Stall in the 'Chasm'—And How to Leap Across

In the mid-1990s, a software startup believed it could reshape document management for all large businesses. For years, sales plateaued—even as early experiments wowed a handful of tech-obsessed clients. The founders debated endlessly: should they try every market, or focus? At a critical board meeting, a mentor insisted they do something radical—ignore broad appeal, and instead pour everything into solving a “nightmare problem” faced by regulatory teams in just 40 pharmaceutical companies worldwide. Many on the team panicked; it felt like gambling the company's future on a tiny pond.

With focus came clarity: developers built the integrations and interfaces needed for only this specialized need. They attended only pharma conferences, called only pharma experts, and wrote up use cases using real regulatory pain points—the kind that cost millions each week in lost patents. It was not flashy, and at times friends at other startups called them narrow-minded. But the bet paid off: within 12 months, the product was the default choice for the world’s largest drug-makers, not because it was the most advanced, but because it covered every single hiccup and compliance headache the segment struggled with. Revenue shot up, investors noticed, and soon the same “niche” product was invited into new departments and industries by those first customers.

Behaviorally, their success hinged on two interlocking truths: social networks within segments matter far more than mass advertising, and mastery—even in small circles—creates credibility spillover. The level of discipline needed goes against most entrepreneurial instincts but proves, time and again, to separate survivors from the failed majority. Jumping too early, or in too many directions, simply delays or dooms mainstream momentum.

Start by brainstorming all the possible groups who might need what you offer, but instead of chasing them all, narrow down to those with a shared pain and clear leader. Score those tightly-bonded groups on urgency, resource availability, and the potential for you to solve their whole problem, not just a piece. When one stands out, make a public commitment within your team to ignore seductive side opportunities for now and pour your energy into outfitting, serving, and connecting inside just that circle. You may face pressure to scale, but if you hold your line, delivering a complete win to that one niche, you unlock a wave of credibility for all the next steps. Try this the next time you’re tempted to split your focus.