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Six Startup Lessons
By Jason | April 10, 2007
Read/Write Web wrote a fantastic list of lessons that any entrepreneur should take a close look at before they start drilling down their target market.
Niche markets tend to be one area that people have a lot of problems with. A very common question I hear is, “Why limit a customer base? Why not target the whole market between 18-24?” The answer: It’s been done and you can’t do it better. Not without significant funding and a business strategy that moves at breakneck speed.
Since I can’t say this better myself, here’s a quote from the Read/Write Web’s article:
“Let us take a look at the social networks available for parents; in this category alone we have Cafe Mom, Maya’s Mom, MothersClick, MommyBuzz, MTV’s ParentsConnect, Famster, and Minti. The niche for parenthood seems to be taken. Yet, it can further be broken down to, say, “Grandparents”, “Stay at home mothers”, “Single mothers”, etc. Becoming a master of any of the smaller niches has many great advantages, such as less competition, loyal readership, and better focus. All marketers exploit a basic positioning principle that states that it is better to be first than to be better. It is clearly too late to be the first social network, or bookmarking service, or video sharing startup. Consequently, the Web 2.0 era demands that startups put intense focus on their niche regardless of the smaller demographics.”
The importance of 2.0 is in niche markets. The example that continues to stand out in my mind is a snowboarding video site I saw on Mashable called SnowVision. Their specific niche is snowboarding movies, already a proven and successful market. Enthusiasts flock to high quality video’s of insane tricks and double back flip 720’s (I don’t even know if that is possible), but the niche is developed. The entrepreneurs just formed a different way of digesting the media. Give it a bit of marketing, and a nice easy to navigate interface, and they are in business.
2007 will be the year of the niche markets. As RWW pointed out, costs of entry are low, open source applications are readily available, and future hopes of buyouts are running a muck. Young entrepreneurs are embracing the internet as a means to realize their dreams. My only advice is to make sure your application is focused!
Topics: Strategy |
April 10th, 2007 at 11:39 pm
Nice — reminds me of Moore’s Crossing the Chasm.
The marketing angle is something we are working on right now, and reading something like this helps me take a step back and see the bigger picture.
April 11th, 2007 at 1:28 am
No problem Cheyne. If you need anything, feel free to send me an email. I love talking to entrepreneurs :0) jdrohn74@gmail.com
April 11th, 2007 at 11:31 pm
Hi Jason,
Thanks for the Minti mention even if in a quote from RWW.
Minti is the first of several niche vertical market offerings from the holding company Vibe Capital. We already have a licensed site operating out of London: www.buildinginlondon.com
We licence our backend technology to others and plan to launch another 3 wholly owned verticals in the coming months.
All the best
Matt
Minti Co-founder
April 12th, 2007 at 10:02 am
Hey Matt!
No problem! That is a great idea.
Keep me posted on the launches so that we can do write-ups as well! I wouldn’t mind talking to you about your approach to ‘white-labeling’ either, if you get a chance.
Jason
May 3rd, 2007 at 8:27 pm
Richard does some good investigative reporting..
LAl