Have you/Are you starting a business in a competitive market?

[schwarzberg]

I hear a mixture of how it's important to cater to a possibly neglected niche of the market or possibly a new market while at the same time I'm told that it's good to have competition because this means that there is a market for your product or service. That is: "both are good", they say.

But in my mind, starting a business in a competitive market sounds riskier: If you are creating a startup in a competitive market, there are big players with big budgets who are 10 steps ahead of you, and who already have customers. Catering to a market that doesn't yet exist sounds like you have some breathing room to delay the launch of your product, your product may not need to be 100% quality at first, you have access to the first customers who will use that service, etc.

So what has your experience been of starting a business in a competitive market? And of starting one in a new market? Which one has the most success stories on this forum? What are the pitfalls of both that you personally encountered?

How can you stay ENCOURAGED to compete in a saturated market when your product/service only differs "just enough" to be unlike the competition?

i.e. Say if you create a niche service like (this is a bad, poorly thought-out example) AgeBook, a Facebook for old people who have poor sight - which works mostly on audio or something - Facebook could easily bring out a similar plugin to their already huge business and squeeze you out of the market. So is niching even helpful? You would need your niche idea to attain success before the big competitors find out, right?

Your views???

 

[BRIDGREGORY]

Targetting a niche is definately helpful in many cases.

My business has been established for 17 years, when I started I was one of only a few, now there are many.

The service that I provide is useful to almost all businesses irrespective of size or industry in addition the role of the person I'm wanting to contact varies.

Without fencing out a niche I would have no where to start my search for new clients.

So I have taken niche areas within the total market and targetted them.

From their point of view they may visit a bigger or at one time more established competitor but not find anything specifically for them.

Say they were a solicitor they would see what the service is but when they when to my site which would be tragetted to Solicitors voila - someone is talking their language and discussing their problems.

Which would you go to.

There is nothing to stop you targetting other niches later or on another website or whatever media you use to attract new clients.

On the competative market side there is nothing wrong with entering a market where there is competition provide You Know What your Unique Selling Points is and how it will benefit your client without this you should stay out of a highly competative area.

Good luck which ever way you decide to go. The link above may help with the USP

 

[Mark T Jones]

I would say that niche is critical. - in that it helps you to have a clear vision of what/who your market is.

To pick up on the Facebook example - Facebook didn't invent social media - for some time they weren't even a competitive player, they were a small, niched Varsity medium - they replicated their niche before eventually becoming the monster they are today. Yes, they could 'steal' AgeBook, but would they really bother?

If your idea is any good others will steal it (if they don't, you can safely assume it isn't worth stealing).

I'd be interesting to know what you think is a non-competitive market to enter?

 

[Mitch3473]

Parrot creche.

 

[japancool]

It's about finding a gap in the market.