Regardless of the quality of the product, a startup would need to point out its potential customers or its market segmentation since a product could not meet all requirements from different groups of customers. Mostly, a best product will not be offered at a cheap price. Hence, there would be a group of customers who cannot afford that product due to their limited income. Because of that, a startup should analyze the market needs carefully and locate its market segmentation based on the product's characteristics and its pricing policy. Otherwise, its product would serve a small segmentation, which will not generate sufficient fund to cover the expenses in operation and production.

To locate an appropriate market segment, the product marker will need to analyze which segments will require the product's characteristics to fulfill the segment's need. After that, the willingness of customers to purchase the product will need to be examined in terms of customer's purchasing behavior and level of income. If customers in a specific segment are not willing to pay an extra money for the product, it is a wrong market segment for the firm.