The Entrepreneurial Mind:
There are some cautions that an entrepreneur should be aware with a niche strategy:
- Entering a niche requires adaptability in your plan. Many entrepreneurs assume that since the niche is a relatively safe place, they can establish their business plan, execute it, and all will be good with the world. But, if you miss the mark on exactly what the niche wants, it doesn’t matter how safe the niche is, the customers will not automatically buy from you. You still have to offer what they want. No matter how much research you do ahead of time for your plan, you can still misjudge the market.
- Niches Change. Even if you get the market right in the beginning, niche markets (like any market) will change over time.
- Niches Can Go Away. No market is forever.
- Niches Can Grow. While significant growth in your market may not sound bad, it can attract more competitors.
In conclusion Dr. Cornwall said:
So is a niche a good place to enter the market? Absolutely. However, change is inevitable and even in a niche market an entrepreneur needs to be able to adapt to survive over the longer-term.