Entrepreneurs, Increase Your Startup Success Rate: Exploit A Trending Niche In Large Markets

No large and successful company got there by focusing on the largest industry and all the customers in the marketplace all at once. The entrepreneurs started with a smaller focus on either a niche in the industry or a niche like focus on a subset of customers in the market. With Patagonia, it was just outdoor climbing gear. With Van’s, it was skateboard shoes. With Meta, it was to connect alumni at Harvard. Even Amazon, with greater ambitions, focused just on books for three years.

The most successful entrepreneurs are the ones who have a zealous focus on either an industry niche or a customer niche. They have been watching shifting trends and see a “small” opportunity to solve a problem for a select group of customers. Do they really know that the industry or market will turn into a large mass market? No. But they do see either a problem or opportunity. They hope the market will expand and grow, but in order to succeed, they first have to create and dominate a small niche.

There are many advantages to focusing on a small niche market. First, there is instant feedback and potential revenue traction. Second is the opportunity to prove the business model. Third, is low initial competition. In addition, there are several other advantages that entrepreneurs should love.

Read the full article from Forbes here.