.When you start in business, your goal should be the best provider of that product or service. You want customers to buy your offerings — and come back again and again while spreading the word out for you.
If you have limited resources, however, it will be nearly impossible to provide the best for all your customers’ needs. It will be easier to get a small slice (at least initially) of their needs and fill that to the best of your abilities and resources. The key to achieving this is through focusing on a niche. Once you have entrenched yourself in the niche, then you can expand and move on to dominating more niches.
Guy Kawasaki said it best in his book “The Art of the Start: The Time-Tested, Battle-Hardened Guide for Anyone Starting Anything” when he wrote:
As a startup, you’re going to start a fire with matches, not flamethrowers. Few startup organizations can afford or manage a flamethrower. In other words, put one niche in your basket, hatch it, put another niche in your basket, hatch it … and soon you’ll have a whole bunch of niches that add up to market domination.