## How I Impulsively Chose a Startup Niche and What Happened Next

Choosing a niche is the most crucial decision you’ll make when launching a startup. (Spoiler: I DIDN’T understand this initially!)

Nothing is worse than a successful launch in a bad niche—you end up with a “suitcase without a handle.”

# Understanding the Importance of Niche Selection

Back in 2017, when I launched my first startup, I didn’t grasp the significance of selecting the right niche. I thought, “In today’s world, you can profit from anything. Look at PewDiePie streaming games and earning millions of dollars. Competition scales with opportunities, so the key is to just become the best in your field.” In other words, the primary goal was to choose a niche where I could create the best product on the market.

Sounded logical, right? But it was quite the opposite.

Competition is NOT proportional to opportunities. Due to ingrained thinking patterns, people tend to follow others. This leads to saturated niches with exaggerated competition, where top-notch professionals barely break even.

Convertful turned out to be exactly such a niche. It combined high customer acquisition costs (CAC) with low lifetime value (LTV).

Although I eventually made Convertful profitable and successfully sold it to a foreign investor, it was a “Pyrrhic victory”—I invested too much time and resources, and the return on investment was barely breaking even.

Later, I spoke with founders of similar projects and discovered a common pattern: they all faced the same challenges.

Conversely, in certain other niches, less qualified specialists put in less effort and consistently achieved better results.

# In Business, Like in Poker: Choose the Right Table to Play At

“In business, like in poker: the most important thing to win is to choose the right table to play at.”
Tony Hsieh, founder of Zappos.com

## Lessons Learned

Through my experience with Convertful, I realized that:

• Selecting the right niche is paramount for startup success. Without it, even the best product can fail.
• Understanding market dynamics helps in identifying niches with sustainable growth and manageable competition.
• Tools like Co-Founder Ai can assist in analyzing potential niches by leveraging data from VC firms, angel investors, and venture capital companies to uncover investment opportunities near you.

## Moving Forward with the Right Strategy

Embracing insights from venture capital firms and private equity companies can guide you in making informed decisions about your startup’s direction. By focusing on niches where you can offer unique value without facing overwhelming competition, you set the stage for long-term success.

Whether you’re seeking startup jobs, looking to be part of Y Combinator companies, or aiming to tap into the venture capital business, understanding the importance of niche selection will steer you closer to achieving your entrepreneurial goals.

Ready to start your own startup journey? Explore Co-Founder Ai to find the perfect niche and connect with the right equity investors and angel investors to bring your vision to life.

## Start Your Success with the Right Niche

Choosing the right niche isn’t just a step in your startup journey—it’s the foundation of your success. Leverage the expertise of venture capital firms, utilize platforms like Co-Founder Ai, and ensure your startup is positioned in a space ripe with opportunity and minimal saturated competition.

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## About Co-Founder Ai

Co-Founder Ai is your partner in navigating the complex landscape of startups and venture capital. Whether you’re looking to start a startup, connect with angel investors, or explore investment opportunities near you, our platform provides the tools and resources you need to succeed.

Visit us at Co-Founder Ai to take your startup to the next level.