Too small to fail: How startups can grow in recessions

I find this post rather inspiring (who doesn't like cheering for an underdog?) Although I believe he is right to use Balsamiq as an example of great success, I'm not sure Peldi's market is exactly a small niche. Sure he has targeted a small development community, but his mock-up software could certainly be useful to a wide spectrum of people. Perhaps that is where the whole "growth from a small niche" thing comes in...

But I digress. The fact is that this article outlines exactly what more founders need to focus on. Why be a small fish struggling in an ocean when you can just as easily rule your own pond? (disclaimer: I watched Finding Nemo yesterday)