Crossing the Chasm
by Geoffrey A. Moore © 1991 HarperBusiness

I am not a marketing guru, but I have read an excellent book on this subject that I recommend to entrepreneurs. Crossing the Chasm talks about these strategies and the importance of understanding the Technology Adoption Life Cycle. Without getting into details, you need to understand that establishing a new market is a very difficult task. The momentum doesn't build right away; a small business owner has several hurdles to cross before the business can grow the way it's expected to. Moore explains that every market has its early adapters, but the really big opportunity for growth is at the other side of the "chasm" made up of people and companies who are waiting for your product or service to gain some traction before they'll give it serious consideration. If you aren't focusing on a beachhead market, then you'll never reach that critical mass of referenceable customers that you'll need in order to cross the chasm. I've said enough. Read the book.