Why It’s Easy To Get 80% Share In a Niche Segment?
Peter Theil in his book ‘Zero to One’ wrote, “It’s much better to be the last mover—that is, to make the last great development in a specific market and enjoy years or even decades of monopoly profits. The way to do that is to dominate a small niche and scale up from there, toward your ambitious long-term vision”
Do you get what he is trying to say?
It is actually easy to get 80% market share in a niche than go broad competing with everyone.
Don’t you like that situation for your business?
When you think about markets like fast food, technology or business, what are the first names that come to mind? McDonald’s? Apple? Trump? Probably. The seconds — or the rest — simply don’t even exist.
The point is there are only one or two names that will leap to mind in any category.
They own the category. They are the category.
And that’s where you want to be with your technology business.
If you are in the $500K to $2M in annual revenue, you better focus on a niche and scale. It’s far easier to do this than to compete with IBM, Infosys and Accenture!
But how can you get to be first?
The answer to being first is not to simply “become visible”.
Any joker with a webcam and a YouTube account can become visible and get millions of hits and comments. They may even get picked up on the evening news and have their 15 minutes of fame.
But so what?
You want to be visible in a way that is trusted, sought after, highly paid, in demand and authoritative.
Your aim is to be visible with authority. So visibility isn’t enough.
But you have another, even bigger problem. The bitter truth is that most markets are really crowded. The leader in any category has often been established for years, if not decades and will be difficult to replace.
That’s the situation most of us find ourselves in.
But I have a simple solution.
Why not simply redefine the marketplace you’re in altogether? Invent a new category altogether that you can dominate and be Number One?
Here are tips on how to go about creating your Market of One:
1. Know your word (your category).
You should have one word that describes your category or niche. At most you should have four to five words that communicate one concept.
In the technology industry, it can be for example ‘we solve complex analytics problem in Oil & Gas’. Or it can be ‘we take team collaboration in the financial industry to orbit level’.
If this positioning already exists, unfortunately, someone is already number one in all of that category.
So you have to pick a smaller box to own. How about “team collaboration in Fintech space for companies under 10M in revenue’?” That’s definitely a smaller box, right? Who’s selling “team collaboration technology for early Fintech companies”?
Can’t think of anyone? Perfect. Your word shouldn’t bring anyone else to mind.
There’s your opportunity to be number one.
2. Know 8 other words (your positioning).
So you’ve defined your category. Now it’s time to define your positioning.
Jay Conner Levinson wrote a great book called Guerilla Marketing. Where he delivers one compelling truth: if you can’t put your position into 8 words or less, you don’t have one.
Ouch, right? But it’s true.
You might not want to put your position in 8 words. You might be afraid that 8 words will narrow your position too much. That you’ll get pigeonholed. But that pigeonhole is EXACTLY where you want to be.
A pigeonhole will clarify exactly your point of difference and help you stand out.
3. Own your box
Let me share a weird theory with you.
Arthur Conan Doyle, who created Sherlock Holmes, had this idea that your mind is filled with a finite number of little boxes that get all filled up. For something new to come in, something else has to leave.
Imagine your prospects’ minds are like that.
They have all these little boxes and one thought or person or company owns each box.
You want your category and your positioning to own one of those little boxes.
You don’t need the entire mind — you just need one little box that is 100% yours.
And then you’ll be Number One.
And as Number One, guess what? You just won.
So go create your Market of One and start getting all the privileges — from more clients to more cash — that a leader inevitably enjoys.
P.S. Whenever you’re ready… here are 3 ways I can help you grow your tech business :
1. Grab a free copy of useful stuff that can help you grow your tech business. More in our blog.
4 Ways to Position Your Tech Business to Attract More Clients Click here.
3 Mistakes to Avoid In Your Tech Business To Grow Revenue Click here.
2. Schedule a 15 Minute assessment call with us – Click here.
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Life is short. Take action and grow. Best Wishes.