Summary
- I learned that focusing on big markets can lead to greater success than sticking to small niches.
- Investors often look for a big Total Addressable Market (TAM), because that's where the big opportunities are.
- If you're targeting a $100 million niche, capturing 5% might earn you a $5 million business.
- However, capturing even 1% of a $100 billion market could result in a billion-dollar business.
- It's just as hard to capture a large portion of a small market as it is a small portion of a large market.
- Instead of going for a niche, aim for a bigger market where there's more potential for growth.
Video
How To Take Action
I would suggest focusing on big markets instead of small niches. Even though targeting niches seems attractive, aiming for a large Total Addressable Market (TAM) can lead to greater success. Start by identifying bigger market opportunities that have the potential for growth. Look for industries or sectors where you can bring your product or service to a larger audience.
A good way of doing this is to conduct research to understand these bigger markets. Use online tools and resources to identify emerging trends and demands. Spending just a little time on research can reveal possibilities you hadn't considered before. Make sure to assess the competition and understand what makes these markets tick.
When planning your approach, remember that capturing even a small percentage of a large market can result in significant rewards. Instead of aiming to dominate a tiny market, strategize on ways to gain even a modest foothold in a much larger one.
To implement this, adjust your marketing efforts to appeal to a broader audience. Use digital marketing to reach more people without spending too much money. Social media platforms can be a cost-effective way to target larger market segments and can boost visibility.
Taking these steps will help position your business for substantial growth and opportunity, setting you on the path towards success without a heavy investment in time or money. Aim high and think big!
Full Transcript
riches are not in the niches it's a big misconception what I learned when I was raising money early on investors like what's the Tam Tam stands for a total addressable Market they all want in big Tam and I quickly realize riches are not in the niches riches are in the big Tams there's a niche it's a $100 million Niche you get to 5% you got a $5 million year business on the flip side you're in a business with100 billion you get 5% they got A5 billion business you don't need a niche you get 1% you got a billion dollar your business that's a big enough business riches are not in the n because it's really hard to gobble up the majority of a market whether it's a niche or a big Market it's the same amount of effort as doing a business in a niche as it in a big Market might as well go for a big Market because there's just so much more money in it
