Niche Markets
What if an idea solves a problem but the market is so niche that it doesn’t attract a large market. Would investors just not be interested and would it be pointless to work on it?
4 comments
Niche market places are useful to work in, primarily due to the novelty that occurs in thinking and life experiences, the reality is that you learn the most disrupting information working in a novel marketplace that is as you describe niche. This means it is possible to learn knowledge which is incredibly disruptive and offers opportunity for extreme reward, however the pay off might take 25 years rather than 4, how long are you willing to delay gratification? :D
Pointless? No, and projects can be completed without investors.
Investors will want to enter a market where there is opportunity for a large return, better than they can do in the stock market. How much money must be invested, what’s the market size, and what’s the expected market share of the startup in that market. SpaceX supplies a very niche market by providing rides to the ISS but they can attract investors.
Investors will want to enter a market where there is opportunity for a large return, better than they can do in the stock market. How much money must be invested, what’s the market size, and what’s the expected market share of the startup in that market. SpaceX supplies a very niche market by providing rides to the ISS but they can attract investors.
Well try and estimate the size of the market, try and estimate how much of it you can capture and how much it would cost to run that company. Then it’ll be worth it if MARKETSIZE * PERCENTCAPTURED - COST > DECENTMARGIN.
Your customers are your best investors here.