Whenever I talk to my team or other business folks, one major resistance that I get from all of them is on this issue of selecting a niche or single target market.
Everyone thinks that their product or service can solve so many different problems for so many people so why limit. It basically comes out to be about whether you want to be a small fish in a large pond or a big fish in a small pond.
And it takes so much of my energy to convince them, that all I am asking them is to prioritize the market entry into different markets. Once you enter one niche, you have to dominate it, take the learnings from that and then move ahead.
People still find it difficult. So I share with them this process, which is inspired by Dean Jackson and his concepts of the Eight Profit Activators.
Step 1 : Isolate all the geographical markets you have the bandwidth to operate in. These could be national , international etc. You can put this in the columns from from B to whatever in one row of your spreadsheet
Step 2: Isolate all the use cases for each of these geographical locations that your product or service can do. You can put this in column A of your spreadsheet.
The moment they start filling (not ticking, which is a copy and paste process) this two by two matrix with their ability to serve the market and get delighted customers, they start backing off.
They may still end up with about 5 or 6 niches , in which they think they can certainly delight customers. Then I ask them to look at which would give the highest probability of profit from the same effort. Since they also realize that time is limited for everyone, after this step most automatically identify a Single Target Market.
Hope the above helps you in identifying your niche and helps you dominate the market.
Till next time then.