i know, i know: go after large markets. the math is easier. but my business plan calls for selling an inexpensively developed but highly compelling product to a niche industry. further, the customer base is somewhat concentrated (kind of goldilocks - small enough you can get to them all w/ out a huge sales force, large enough that losing one won't sink you). how do I reconcile the many niche market startups that exited profitably with the received wisdom of "large markets only, always, forever?"
I don't know where you got your
but I don't thinks its correct.
Sure if you're looking to do the stero-typical Facebook/Twitter/Instagram/flavor-of-the-month-zero-revenue-startup then thats the way to go. But you're playing a lottery with a very small chance of success (although with the chance of a huge payout).
There are lots of advantages of going for a very targeted niche
And most niches are WAY bigger than you would possibly think.
Some references for further reading - there are lots more out there saying a similar thing
Also search for "Long Tail"