Picking a Wedge - By Lenny Rachitsky - Lenny's Newsletter

A Niche Requires You to Narrow Your Product Focus

As a general rule, horizontal markets are too large and expensive for self-funded startups to navigate.

Building an online invoicing software as a service (SaaS) application? Good luck. Building an online invoicing application targeted at landscape architects? Now you’re talking. The genius of niches is they are too small for large competitors, allowing a nimble entrepreneur the breathing room to focus on an underserved audience. Once you’ve succeede

Bringing a new product into an existing market Bringing a new product into a new market Bringing a new product into an existing market and trying to resegment that market as a low-cost entrant Bringing a new product into an existing market and trying to resegment that market as a niche entrant