Niche vs. General business
Many people say that it’s better to make niche businesses or products than general businesses or products.
I disagree unless your goal is to just make a good living.
By creating niche things, you will have much less competition and often you can charge more from your customers.
But the amount of growth potential will be severely limited unless you’re planning to expand into many niches.
Yes, you can make up to a few millions with some narrow niche businesses if you found a great niche with little to no competition and you know what you’re doing, but in general much less.
And while I’d say that it’s generally easier to make a living running a niche business than a general one, I will from now on avoid making products/businesses that have less than up to 100 million dollars of yearly income potential because that’s a sign of too narrow niche to me.
Let’s say that you made an application that translates Portuguese into Finnish and is clearly the best that does it and you’re selling it online.
Not only would the population of Finland limit it severely. It would have a very small chance of being profitable enough to be able to be advertised on Finnish radios/magazines/tv or even websites
because only a very small percentage of Finnish people would need such software and there’s little to none Finnish websites or magazines that are solely about Portugese or Portugal.
So it would be extremely hard to get the word out because press releases wouldn’t do enough and you’d probably only be able to sell it to a few other companies and some schools by contacting them.
The effect of word of mouth would be very severely limited as well.
So the business would end up as a failure or slight success at best because the picked niche was just too narrow.
The above example has an extremely narrow niche but more common niches have the same problem but of a lesser magnitude.
So by having businesses that sell general products or services you’re not limiting your growth potential and you’re able to make the most out of advertising, affiliates, word of mouth etc.
Sorry about not posting here more often, lately I’ve been too busy with my businesses. Anyway I’m now running an Atkins Diet like diet test and the I’ll make a post about that after a month or so.