Struggling to stand out? Here’s how to pick a winning niche and dominate your market
If you havenāt read the first blog post yet, check it out here: Validate Your Startup Idea Using AI. Also, watch the video here: Watch the Video. Last time, we validated if your idea was worth pursuing. Now, letās nail your niche so you can build a category-defining business. Too many founders fail because they chase too many customers instead of OWNING a niche. If youāre stuck spinning your wheels, this guide will get you laser-focused.
š”Example: Instead of a generic pet grooming business, go niche: “Mobile grooming in Tri-cities for anxious dogs who hate traditional salons.” Now youāre the only choice.
šØBiggest mistake? Chasing too many customers instead of OWNING a niche.
š Less competition
š Faster sales
š Higher pricing power
šÆ Now, letās find your niche using AI
Knowing you need a niche is one thing – finding the right one is another. Letās break it down step by step. Follow these steps to filter out distractions, validate your market, and position yourself for success.
Step 1: Find your market/founder fit
Forget “market research” and “product/market fit” for a second. What niche actually fits YOU?
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Who do you WANT to work with? (e.g., startup founders, athletes, parents, tech execs)
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What do you LOVE doing? (e.g., strategy, design, AI automation)
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What unique skills or past wins do you have? (Your unfair advantage!)
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Are you creating a brand-new market? (Congrats, youāre a Category Leader. š)
š Pick a niche that excites you – because youāre about to go ALL IN.
Step 2: Let AI pinpoint you best niches
š Before diving into AI-powered filtering, take a moment to refine your niche manually. Either update the Jobs-To-Be-Done framework from the previous blog post, or provide AI with details about your skills, experience, passion, and insights from conversations with friends, family, or industry peers to help carve out your niche more effectively.
Now, letās put AI to work! Use this prompt to quickly refine and prioritize your top 3 niche ideas based on:
- Skill & experience alignment
- Market urgency
- Competition vs. opportunity
š AI Prompt:
Based on my {passion}, {interests}, {skills} and {experience} , can you refine and prioritize the results above ? Consider:
1. Which niche aligns best with my passion?
2. Which niche aligns best with my expertise?
3. Which niche aligns best with my interests?
4. Which niche will help me succeed and sustain in my business?
5. Which niche has the highest urgency for a solution?
6. Which niche has strong demand but low competition?
Rate the attributes on a scale of 1 to 5.
Provide the output in a concise markdown table format with ten columns: Need, Context, Desired Outcome, Passion, Interest, Expertise, Success, Urgency, Competition, Recommendation
š”Pick a niche that excites youābecause youāre about to go ALL IN.
Step 3: šØ NAIL your niche
š°This step is inspired by Alex Hormoziās $100M Offers framework. Learn more from his original work here: Pick Your Niche Checklist – Acquisition.com. Your niche must pass the NAIL Frameworkāthis is your final filter before committing. If a niche fails one of these tests, tweak it or pivot. This ensures you’re selecting a stable, profitable, and reachable niche based on real customer needs, not assumptions.
š AI Prompt:
While Alex Hormoziās Pain, Purchasing Power, Easy to Target, and Growing framework works well, weāve restructured it using the Jobs-To-Be-Done (JTBD) framework to make it more actionable, customer-centric, and sustainable over time. Our new framework is called NAIL (Need, Affordability, Interest and Longevity).
Need: Instead of focusing solely on pain points, we use Jobs-To-Be-Done (JTBD) to define what customers are actively trying to accomplish. A job is not just a needāitās when, where, and why customers are struggling to achieve a goal.
Affordability: Instead of guessing if customers can afford your product, we map purchasing power to job participants. Not every job is directly paid for by the job performerāsome stakeholders (parents, managers, businesses) pay for the job to be done.
Interest: Instead of guessing if customers can afford your product, we map purchasing power to job participants. Not every job is directly paid for by the job performerāsome stakeholders (parents, managers, businesses) pay for the job to be done
Longevity: Instead of just looking at market growth, we analyze the stability of the job over time. Some jobs never go away (e.g., housing, health, education). Others disappear. If a job remains, look at unmet needsāwhatās frustrating about current solutions?
Assess the previous results using NAIL Framework.
Provide the output in a concise markdown table format with ten columns: Need, Context, Desired Outcome, Affordability, Interest, Longevity, Passion, Expertise, NAIL Result, Recommendation. NAIL Result is either pass or fail based on your assessment.
Step 4: Generating a value proposition
Letās revisit how you sound when you say your value proposition.
š AI Prompt:
Using this information, can you give me five options for one-line slogan in the format of “We help [target customer] achieve [desired result] without [painful trade-off].
š Compare this with the value proposition output from the previous blog. Night and day, right?
Step 5: Go all in on your niche!
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Pick ONE niche & dominate it
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Craft a laser-focused offer
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Test messaging & refine
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Market HARD to your perfect-fit customers
ā ļø Reminder: Donāt get distracted. The riches are in the niches.