Let me tell you about the smartest idea I ever had—and why it almost killed my first company.
I productized a service with one flat fee. No more hourly billing. I’d built enough operational efficiency that I could charge half what my competitors did and deliver something just as good, often better.
I thought it was brilliant.
But my clients were big pharmaceutical companies, and their procurement systems were built for one thing: labor billed by the hour. That’s how they bought this type of service.
My beautiful flat fee didn’t fit a single box on their forms. The companies with the budget and the need literally could not buy what I was selling.
You know who could buy it? Small startups—the ones with no money and barely any need for it.
There I was: a better product at a better price, with a market the size of a postage stamp. The approach failed fast. No amount of selling was going to fix it.
A Demand Problem
You hit a number and stop growing. So you go looking for the broken part.
You blame the sales leader, the compensation plan, the CRM, or the funnel. You add a process, buy a tool, or run another offsite.
And the line stays flat.
Nobody wants to ask: What if nothing is broken? What if the market has already made its choice, and this is how many people want what you sell?
I’ll be honest about why we avoid it. A people, process, or technology problem is fixable. A demand problem is different. It means the thing you built—the thing you love—might appeal to only a narrow slice of the world.
So we grab the lever we can pull instead of facing the truth we can’t.
The Market Is the Kiln
I’ve been chewing on a story from Atomic Habits, inspired by a book called Art & Fear.
A ceramics teacher split his class into two groups. One half was graded on quantity: Make 50 pounds of pots to earn an A. The other half was graded on quality: Make one perfect pot to earn an A.
The best pots, by far, came from the quantity group.
While the quality group sat around theorizing about what perfection looked like, the quantity group was at the wheel—making, failing, adjusting, and making again.
My flat fee and I belonged to that failing quality group. I’d built the perfect pot in my head: brilliant pricing and a beautiful model. What I hadn’t done was put enough repetitions through the real market to find out whether anyone could buy it.
Product-market fit isn’t determined in a conference room with a whiteboard and a polished deck. It’s proven through volume and repetition.
The market is the kiln. It grades fast, doesn’t care about your feelings, and is the most honest member of your leadership team.
The Sample Size Lie
When your volume is low, your sample is small. And a small sample lies to you.
A few happy customers feel like proof. I had real buyers among the handful of startups that loved what I made. It felt like evidence that I had broad appeal.
I didn’t.
This tricks you into building your organization around a market that was never tested at scale. Then you discover that the ceiling was never your team’s capabilities or execution.
It was the size of the room you were selling in.
No Scorecard, Accountability Chart, or perfectly run Level 10 Meeting® can manufacture demand that was never there.
Diagnose It Honestly
Running EOS purely doesn’t mean grinding harder on the same machine. It means putting the real issue on the table and IDS-ing it—even when it’s uncomfortable.
At your next Level 10 Meeting®, ask the questions you’ve been avoiding:
- Is this a sales issue or a demand issue?
- Have we run enough repetitions to know the difference?
- Is our Target Market™ as large as the plan assumes?
- Can our audiences even buy the way we sell?
Then look at your Core Focus. Your Purpose doesn’t change. But your Niche—the way you deliver on that Purpose—might need to evolve before the market forces it to.
You’re standing at a flat line.
You can keep blaming the lever you know how to pull and burn yourself out hitting a ceiling that won’t break. Or you can get honest about what the market is telling you and build your Vision on truth instead of hope.
Decide intentionally whether to own your niche, if it’s sustainable, or go build something the market actually wants and can afford.
Every Saturday, I share my personal thoughts, practical frameworks, and lessons learned from leading EOS Worldwide.