Deciding the niche, some things you need to address
Especially when launching a start-up you should not be afraid of the fact that there are other companies in your market when you talk to investors. The fact that you have competitors proves that you are not the only one who considers that it is potentially an attractive business. An investor is going to turn back the fact that an entrepreneur tells him that he is the only one exploiting a market, with the potential of billions of euros. Its unlikely, is not it?
So we have two ways of dealing with the issue of the competitive situation:
Market niche with little competition
The advantages of a niche market with reduced dimensions can be the absence of a large number of competitors. In niches you have the possibility to dominate and act from a position of leader.
The big challenge is to overcome the barriers in the form of the market size. In this case what you can do is, to take actions to increase your target audience.
It can be a good position for a company that does not have great ambitions to grow and does not want to waste its resources in fighting against competitors. Even though it seems surprising to you but there are entrepreneurs with this philosophy and it is not necessarily a bad thing to want to make a living by being a little more relaxed (whenever you can, of course).
Great market with lots of competition
These are the traditional lifelong consumer markets. The key is to differentiate yourself from the rest so as not to look like one of the pile. Marketing plays a fundamental role because differences in functionality may disappear in some segments or are so minimal that they are not perceived.
It is a market where you have to move continuously. A leadership to this day does not guarantee you to remain in that position tomorrow. You have to break your head to be in the users heads when making a purchase decision. It is a complex game in which there is much to gain and much to lose.
Needs in a market can be created from scratch but it requires consumer education. The sales cycle is much longer. You risk that what is sown for a time does not pay off and then the income never comes. The decision is not obvious.
What do you think? would you rather work in a niche with no competition? Or in a niche with lots of competitors?
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savidge4 -
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DABK -
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Robert Bridgen -
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