Here’s Why You Should Go Niche Your First Year Of Business
So you’re starting a new business and you decided to go big from day one.
You think that targeting multiple markets at the same time will give you bigger opportunities of getting more clients. You think that your product idea has a lot of potentials to dominate multiple niches at the same time.
Big mistake.
“Wanna get big? You might consider going small…” — Carolyn April, Sr. Director, Industry Research, CompTIA
Don’t get me wrong. But your billion-dollar business idea is probably not a billion-dollar business idea. We usually get excited about an idea and start dreaming about all the success we will get when our product goes live.
We start dreaming about the interviews, press releases, and Lamborghinis we will buy when we launch our product online.
But in most cases, we get shot in the head by the reality. In the end, our billion-dollar business idea can’t even pay our internet bills.
Don’t get me wrong. I’m not saying your business idea is not successful, but you probably should target a smaller audience at the beginning. Because any new business idea is based on assumptions.
You create a plan of what you’re going to do, who is your customer, and how you will get them to find your product. But at the end of the day, you’re just assuming. And the first thing you want to do when you’re working on your MVP is to validate your assumptions.
This is exactly why you should go niche.
Most business owners don’t define who their ideal customer is, especially at the beginning. If you make this mistake, you will end up building a product that doesn’t satisfy the needs of anyone.
You want to target only 1 small audience, like let’s say, young cyclists, or people who enjoy camping in large groups, or high school students who struggle at XYZ.
Targeting a specific group of people will help you attract customers who’re highly interested in your product and are willing to try new features and give you feedback to improve the product. Some of these early adopters are willing to pay for the product even if it’s not 100% complete.
Why?
Because they feel this product can help them solve a problem they have.
One more reason why you should go niche is to reduce overwhelm and burnout. There are high chances that you’re working alone on your business right now.
You do everything from design, development, and marketing. The last thing you want to deal with now is having hundreds of complaints from customers who think your product sucks or people who book a call with you and never show up.
By going niche, you’re making sure that only people who care about your product/service will contact you. You’re making sure that you only get requests from people who’re willing to pay for your product, not generic people who expect you to give them everything for free.
Conclusion
Targeting a small number of people in your first year of business will help you attract customers who’re highly interested in your products. These customers are willing to buy your products/services because they believe it will solve a problem they have. Therefore, they will be happy to test your new features and give you feedback to improve the product.
This post is part of a series of stories that explore business growth strategies that actually work.1. We Need To Redefine ‘Hard Work’ To Include ‘Hard Thinking’
The mind-shifting strategy to work smart not hard.2. How To Stand Out In A Crowded World
The power of story-telling.3. The Best Marketing Doesn’t Feel Like Marketing
How to market your products like a pro.4. The One Piece Of Advice That Changed My Life
A must read before starting any project.5. How I Went From 0 To 541 Email Subscribers In One Day
Give before you get.6. 10 Things Successful Creators Do That You (Probably) Don’t
Lessons from successful creators.7. 5 Side Hustles You Can Start This Weekend
Making money online is easier than you think.8. Here’s Why You Should Go Niche Your First Year Of Business
If you want to go big, go small first.9. 4 Actionable Tips To Find A Profitable Business Idea In 2022
A practical approach to come up with a profitable business idea.10. The Unfair Advantage Of Business Success
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