| 1. Pick up a tiny niche based on (a) target audience already pays for tools online (b) target audience is easy to find online - there exists at least one forum targeting this niche (c) niche is so small that it is not profitable for most companies to go after (d) you are passionate about the niche or already have some link to it (know enough people in your social circle) 2. Figure out how you will market to your audience. Spend tiny amounts of time/money on each channel to test whether you could gain traction through any one. (a) Posting on forums (b) Content marketing (c) SEO (d) Paid acquisition 3. Research on existing tools and competitors in the niche. Focus research on (a) lack of functionality in the tools provided (b) tool is too generic for the niche (c) they are not using a specific marketing channel that you think would work very well 4. Out-compete your competitors on the following (a) Build a better tool (b) Do better marketing (c) Provide better customer support Important things to keep in mind 1. Never compete on price 2. Do marketing before product development. For e.g. if your main channel is content marketing, start writing content before you build your product. If it is forum posting, start posting on multiple forums and gaining credibility there before you think of your product. |