A niche market can be sizable

Serving a niche market could be a profitable endeavor for many entrepreneurs. After all, trying to deal with mainstream products or services meant meeting competitors head on. These competitors could be giants or small outfits, brick and mortar or online or both.

With a well defined niche, you could become one of the few sources of certain exclusive products or services. Before the internet became prevalent, trying to serve a niche market was somewhat challenging. Unless you live in a large city, the size of the niche market in your neighborhood could be a bit too small to be sustained. Take as an example, a city of three million in which a million, say, are millennials. If your niche served 0.1 percent of these millennials, your potential market size would only be limited to one thousand.

However, things have changed since the world wide web brought about a high level of connectivity.  Instead of a city of three million, the reach of the internet is now in billions. Suppose the number of people living in cities similar to yours of three million adds up to a billion. Then the same 0.1 percent would mean a potential market size of one million. While a potential market size of one thousand could be considered small, that of one million could not be.

What this means is that if you considered your start up to be serving a niche market which is somewhat small, think again. If you could modify the business model to go online to serve this niche, it could prove worthwhile.

 

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