STEP 7:
Segment the Market

Market Segmentation is the first step in the original DE framework, and the fact that it comes later here does not make it any less important. As a climate and energy energy entrepreneur, you just have more to do before you're ready for this step, mostly in terms of understanding the problem and the potential solutions, as well as yourself and your team. Once you’ve got at least some concept of an idea or technology, it's essential to understand who will pay for it.

Market segmentation provides a structured way to compare and contrast possible customer groups with one another and decide on a way forward. The goal is to identify the most promising market entry point, among the wide universe of options. In this step, you’ll brainstorm a wide range of possibilities, then systematically evaluate and filter them down to 4-6 top contenders.

This step forces you to think strategically about where to start. Not all markets are created equal. By analyzing factors like market size, ease of entry, and alignment with your solution and team, you can avoid wasting time and resources on the wrong targets. It’s also a chance to refine your understanding of how your solution fits into the broader landscape, setting the stage for future growth.

By the end of Step 7, you’ll have a clear picture of the possible markets you could enter, as well as a detailed analysis of the front runners.