As a market researcher, I often see entrepreneurs get excited about a particular niche, only to struggle to gain traction in that niche. The problem is that a niche-only view can still be too broad. Yes, your niche defines the segment of the market you are focused on, but defining a niche doesn’t always tell you how to approach the market. The next step – the key -- is to find your "wedge" and defining your wedge is just as important as defining your niche.
What’s a wedge?
A wedge is a space in the niche that is currently underserved. It may be a specific pain point or an unmet need. Sometimes it’s the result of a shift in the market that simply hasn’t yet been fully addressed. Sometimes it’s a space for improvement in the niche that is apparent to you based on your own experience and expertise.
Finding and defining a viable wedge for your business takes a little bit of research.
But, don’t let that scare you off!
To get you started thinking in this way, I’ve included some tips below as you go about finding and defining your business’ wedge.
- Put yourself in the customer’s shoes within the niche. Notice any disappointments, hassles, or deficiencies. Your wedge lives in these gaps.
- Leverage your previous experience. What do you know that other niche competitors don't? What access or relationships do you have that are unique? Your wedge combines your expertise and connections.
- Look at what customers in the niche say they wish was better or different. Look for patterns in what they are lacking that you could solve. Their collective unmet needs signal where your wedge might be.
- Observe failures and attrition. Why do some customers leave or switch providers? Where do most businesses in the niche fall short? Your wedge fills the holes others leave empty.
- Match your skills and interests to evolving market trends. What changes are underway that align with your capabilities? Ride that wave early to gain wedge momentum.
Want some help zeroing in on your wedge? Use this quick 4-step worksheet to start defining your wedge within your niche.