your position on the canvas · red → green
“
Three questions that find the 12.5% of the market most likely to become your customer.
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Master this box and you stop pitching everyone — and start converting the 12.5% most ready to buy now.
Work top to bottom:Start→Do the work→You’re ready
START HERE
You’re pitching everyone — BUT converting no one.
Asked who your customer is, you say “anyone who has the problem.” Focus feels risky, so you pick the bigger half because “there’s more opportunity there” — but the bigger half is more obvious, more crowded, and more comfortable, which is exactly why it’s harder to win.
→ Be honest: are you going wide because it’s right, or because it’s comfortable?
DO THE WORK
Ask the Three OR Questions.
Three either/or cuts halve the market again and again — from “everyone” down to the few most motivated to buy now, your Initial Client Profile:
Whole Market50%of the market50%of the market25%of the market25%of the market25%of the market25%of the market12.5%12.5%12.5%12.5%12.5%12.5%12.5%12.5%
Split the market in half three times and you land on the 12.5% most likely to buy — your ICP.
You grow 2X faster going narrow, not wide. In retail the secret is location, location, location. For a startup it’s focus, focus, focus — one problem, one customer type, one industry or geography.
“Profile, not Persona. Client, not Company.”
YOU’RE READY
You can name one specific person — not a company, not a persona.
When your ICP is a single, reachable Initial Client Profile, you’ve mastered Bifurcation. Move on to Competition.
THE THREE BIGGEST MISTAKES
SKIP
You target several markets at once and never actually bifurcate.
SHORTCUT
You make the cut but pick the bigger half because it “feels like more opportunity” — the crowded side that’s hardest to win.
STUMBLE
You pitch the early majority before they’re ready to buy — they want proof and references you don’t have yet, instead of innovators and early adopters who’ll buy on vision alone.

3 Questions to Ask About Box 2 — Bifurcation

1. You divided the potential market for your solution in half three times using OR questions to land on your Initial Client Profile™ (ICP)

What does "ICP — Initial Client Profile™" mean?
ICP — Initial Client Profile™
“The narrower your ICP, the fatter your wallet.”
What

Bifurcation simply means splitting something in two. In this box, you bifurcate the market three times over to land on your Initial Client Profile.

The secret is to focus, focus, focus. Focus on one problem, for one kind of customer, in one industry or geography — not three problems for everyone everywhere.

You get there by asking three OR Questions: A or B, each time splitting the market in two. By doing this three times — whole market → 50% → 25% → 12.5% — you get to the portion of the market that is more likely to become your initial customer.

This maps directly to the technology adoption curve: Initial is the innovator or early adopter. Ideal is the early majority — the much bigger group you'll eventually win, but only after you've crossed the chasm between them and the early adopters.

Why

Early adopters buy because they feel the problem and trust their own judgment—they don't need case studies; they are action-oriented and don't mind being first.

The early majority is different: they are far more risk-averse, which means they wait for proof and references before they'll act, which is exactly what a new company doesn't have yet.

Chasing the bigger "ideal" market before you've earned it means pitching people who are unlikely to say yes — no matter how good the pitch is. Focus isn't a compromise, it's targeting the people who are more likely to actually buy from you now instead of waiting until later.

How

1. First OR question — narrow the customer: B2B or B2C? Enterprise or small business? This splits your whole market by 50%.

2. Second OR question — narrow the industry or geography: e.g. restaurants or retail? Urban or rural? Take the more motivated half (not just the bigger one — see the Motivated Half question) and split it by 50% again — you're at 25%.

3. Third OR question — narrow the problem itself: which specific problem, out of everything you could solve, are you solving for this group? Split that quarter by 50% once more. Three cuts takes you from 100% of the market to the 12.5% slice left standing — that's the math behind "Three OR Questions."

4. That 12.5% is one specific, reachable person, not a list. Test it: open LinkedIn and find 3 real people matching the description in under 10 minutes. If you can't, one of your three cuts wasn't narrow enough — go again.

Example: Restaurant scheduling software, cut three times: (1) Independents, or chains? → independents. (2) Already using some scheduling tool, or none at all? → none at all — more pain, more motivated. (3) Owner-operators, or restaurants with a dedicated manager? → owner-operators, who feel the scheduling pain personally every week. Three cuts, 12.5% of the original market, one specific person: an independent restaurant owner-operator with no scheduling tool today.

2. At each split, you picked the half most likely to buy now — not the half that looks bigger

What does "The Motivated Half, Not the Bigger Half" mean?
The Motivated Half, Not the Bigger Half
“A smaller, motivated market beats a bigger, comfortable one.”
What

At every bifurcation split, two halves of the market are on the table. One is usually bigger.

The other is usually more motivated — further along, more in pain, faster to say yes. Pick motivation, not size.

Why

A bigger half feels like more opportunity, but a founder with limited time and no track record converts a small motivated group far faster than a large indifferent one — and speed to first customers matters more than addressable market size at this stage.

Chasing size early is one of the most common reasons founders spend months in a market that technically qualifies but never closes.

How

1. At each bifurcation split, write down both halves and estimate their size.

2. For each half, ask: who is already actively looking for a solution, right now, this month?

3. Pick the half with more urgency, even if it's the smaller one.

4. Repeat at the next split. After three splits you should have a small, highly motivated slice — not a large, comfortable one.

Example: Splitting "restaurant owners" by size: independents vs. chains. Chains are the bigger half by revenue. But independents who just lost a manager are more motivated — smaller pool, but they're actively in pain this week. That's the half to chase first.

3. At least 4 of your last 5 prospects are an Innovator or Early Adopter — not the risk-averse Early Majority who won't buy until you have significant proof

What does "Innovators & Early Adopters — Not the Early Majority" mean?
Innovators & Early Adopters — Not the Early Majority
“The early majority won't buy until someone else already has.”
What

The adoption curve has five groups: Innovators, Early Adopters, Early Majority, Late Majority, Laggards. Innovators and Early Adopters buy on vision and their own judgement.

Everyone after them — starting with the Early Majority — waits for proof before they act.

Why

The Early Majority is usually who founders picture when they say "ideal customer" — it's the bigger, steadier market. But the Early Majority structurally cannot say yes to an unproven company: they buy based on references and case studies you don't have yet.

Pitching them first isn't a stretch, it's asking someone to do something they're constitutionally unable to do. Innovators and Early Adopters are the only people who can actually buy from you before you've crossed the chasm.

How

1. For your last 5-10 real prospects (won or lost), ask: did they need a case study or reference before they'd move forward, or did they act on their own judgement?

2. Anyone who asked "who else uses this" or "do you have customers like me" before engaging seriously is Early Majority or later — not your Initial Client Profile.

3. Look for the ones who said yes based on the problem alone: they're your innovators and early adopters. Write down what they had in common.

4. Target that profile deliberately until you have enough proof to start crossing the chasm.

Example: Two prospects, same pitch. Prospect A: "This is exactly the problem I have, let's talk."

Prospect B: "Interesting — who else is using this?" A is an early adopter and can buy today. B is early majority and will not buy until A (and people like A) already have — no matter how good the pitch is.