Niche Down, Niche Up

A lot of great companies started super niche:

• eBay started with collectibles

• Facebook started only at Harvard

• Amazon started with selling books

Now I know everyone and their dog wants to debate niches on 𝕏.

But Peter Thiel simplifies the concept in a Stanford University lecture, explaining that “large existing markets typically mean you have tons of competition.”

If you jump into a highly competitive market with no experience you will get stomped out fast. It doesn’t matter how innovative you think you are.

Rather, by dominating a small, untapped market you can lay the foundation for future expansion.

Thiel adds: “You want to be a one-of-a-kind company where it’s the only one in a small ecosystem”

Lay your base. Niche down before you niche up.

Source: Competition is for Losers with Peter Thiel

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