I recently wrote that you shouldn’t worry if other people are already doing what you want to do and I certainly believe it.
However, if you still think that your chosen niche is too crowded, I’ve got a big news for you: you can niche down!
Niching down could lead to more opportunities
While choosing a big niche means having access to a much broader (potential) market, it would also mean having to compete much harder in order to attract new customers and make them choose your product instead of the competition’s.
Instead, if you niche down and try to really focus your attention on a subset of the original market you were going to address, you might discover two things:
- It will be much easier to develop a product which is a good fit for your customers
- It will be easier to connect with your potential customers and establish yourself as a leader
If you niche down, your product is much more focused
When you decide to tighten your niche, you make a conscious effort to develop a more focused product (Click to Tweet). A product that directly address the needs of a smaller market.
And while you might be scared of having a smaller market in the first place, you’ll soon discover that you’ll be able to offer a much better product to your customers because you’re trying to solve the pains of a small subset of people instead of those of a huge crowd.
Let’s say you want to build an app to allow people to set up their own website. Huge market since everyone needs a website these days. But also a nightmare of a product to develop.
You could have a lawyer who wants to setup a website, a freelancer, a local shop, a school, a big corporation, a small mom & pop business. How on earth do you think you could create a product which can satisfy all the different needs that all those different people have?
A lawyer might need a secure section on his website to share private documents with his clients. A local shop might want to setup a cart, a school might want to have a dashboard for parents to check their kids’ grades, and so on. Definitely a nightmare!
And even if you managed to create such a product, it would be very tough to market it properly.
Let’s say, instead, that you decide to focus on building an app to enable schools to easily setup a website. That could be interesting!
You would immediately know what to do: contact a few school principals and ask them about their needs!
Then you could have a look at what’s already on the market and develop a plan to make the best website builder for high-schools!
You would have a chance to enhance your product with features that a high-school would want but that nobody else would. You could add a private section for teachers to update students and send them extra-materials to read at home. You could set up a parents-only page so that parents always know how their kids are doing. You could have a way for schools to send monthly newsletters to families.
And once your product is ready, you’ll know exactly who to market it to.
A solid business doesn’t need millions of users
Nowadays, there are enough people online that you don’t have to target a huge niche in order to attract enough people to sustain your business (Click to Tweet).
With more than three billion people online, I can guarantee you that you’ll be able to niche down but still have enough of a potential user base to make a good profit.
It all comes down to whether you want to build a huge startup to take on Google, Facebook and Netflix, or if your goal is to create a solid business with enough profits to pay you a good salary and make you and your family financially independent.
I believe the latter to be the sounder choice, because unless you have the grand ambition to become the richest person in the world, you’ll be in much better shape if you focus on building a business with profits and not exponential growth as the goal.
So even if you decided to niche down, you’d probably need just a few hundreds or maybe a couple of thousands customers to turn your product into a success and make enough money to live well.
And unless you pick a really bad niche, I’m quite sure your problem won’t be not having a big enough customer-base, but it could rather be poor execution or poor marketing.
You can always change your niche
Finally, there’s one last thing you should keep in mind: whatever niche you choose, you’re not marrying it! (Click to Tweet)
Let’s say you picked a niche you thought you would like and that could allow you to make a good profit. Then after a few months you realize that people in your chosen niche don’t really like to spend money on a product like yours. Or maybe you just find out you don’t like the niche at all.
Guess what? You can always pick a different niche. And if you do it, you’ll have learned quite a bit from having chosen a bad one before and you’ll be able to apply that knowledge to picking a new one.
I can understand it’s never nice to admit being wrong, but neglecting it won’t do you any good (Click to Tweet). So it’s better to be honest with yourself and move on.
And should you decide to pivot your business, if you provided value to your niche and were honest to the people you connected with, I’m sure some of those people will follow you even after the switch.
So don’t be afraid to niche down because it could be the most valuable thing you’ll do to your business (Click to Tweet).
And as they say, it’s better to be a big fish in a small pond, than a small fish in a big pond.
What’s your niche? do you think it is tight enough for people to really understand what it is that you do?
The 10 steps to picking the right niche
Picking the right niche seems like a daunting task which is why many people avoid it in the first place.
However, it's quite easy if you know the right steps to take, which is why I decided to put together a list of the 10 steps to picking the right niche.
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