We are building a centralized communications hub. The market is large with many prospects from small and large businesses to churches and all in between. Investors seem to want very specific targets.
That's a very good question and one that I've had to answer as an entrepreneur, as a Board member, and as an advisor to entrepreneurs. Investors consistently ask or think about a handful of key questions while they screen and the listen to pitches.
1) What problem are you trying to solve, for whom, and how many of them are out there? This is where you have to pick an initial focus but highlight the future possibilities. For example, I started a nutrition company and while our total addressable market was "anyone who eats", we picked a very specific niche and distribution channel to begin our sales and marketing efforts. This tells the investor that your time and their money won't get spread too thin to make an impact. I think this helps answer your specific question. It's an excruciating question that start-up teams wrestle with early on so you are not alone!
Here are some other key questions investors ask:
2) Who will pay you for your solution and how much? This is not necessarily your end customer.
3) How much do you need right now and in the future to build your company?
4) How will I, as investor, get my money out? In other words, what are the potential exits for the investors?
5) Are you a team that can make it all happen?
Please set-up a call with me if you'd like an objective sounding board for your ideas and your pitch. I'd be very happy to help.
All the best.