Matt RaglandNewsletter Guy, YouTuber, Proud Dad of 4 and BJJ Purple Belt

Your niche is the problem you solve.

Name: Your niche is the problem you solve.
Uploaded: 2024-03-22T14:15:24+00:00
Duration: 59 s
Channel: Matt Ragland
Description: In this concise business‑strategy monologue, the speaker argues that a sustainable business hinges on selecting a single, well‑defined niche. The process…

22 Mar 2024 · 1 min

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In this concise business‑strategy monologue, the speaker argues that a sustainable business hinges on selecting a single, well‑defined niche. The process starts with creating a specific customer avatar and identifying a problem that the avatar both recognizes and is willing and able to pay to solve. The speaker introduces a four‑quadrant framework for evaluating niche ideas: (1) the scale of the problem (which determines potential revenue), (2) the entrepreneur’s competency in solving the problem, (3) the customer’s awareness of the problem, and (4) the customer’s willingness and ability to pay. He warns against the common mistake of trying to educate the market about a problem they don’t perceive, as this wastes resources. Ultimately, a niche is simply the intersection of a clear avatar and a clearly articulated problem that meets all four criteria.

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Let's assume the objective is to create a business that sustains us with some kind of regularity where we're not stressed about making money every month. You've got to pick one niche. You have to create a customer avatar that needs what you have to offer. So to me, there's like a little bit of a quadrant here. You have to find a problem that needs to be solved. The scale of that problem will determine the scale at which people will pay for it. That problem has to be something that you have some level of competency solving that people are aware of. So this This is another problem that I see often happen is that people solve problems that the people aren't actually aware of. A lot of times people are like, well, I'll just teach them. Well, then you're spending all of your money trying to talk somebody into solving a problem that they don't— aren't like super aware that they have. And then the fourth quadrant is that they're willing and able to pay. People may be willing to pay for it, but they're unable. Picking a niche is actually just picking an avatar and a problem. And that's the niche. If people are confused about how you can help them solve a problem, they're going to go to somebody who is very clear how they can solve the problem.