In the competitive world of business, finding your unique market position is not just an advantage—it’s a necessity. Most business owners intuitively understand this, but when you’re in the thick of building your business, it’s incredibly challenging to constantly try to find that unique niche.  After building seven different companies over 30 years in the $5 million to $25 million range, including two that made the Inc. 500 fastest-growing list, I’ve learned that the key to sustainable success lies in identifying and focusing on a specific small niche that others either haven’t found, have over looked, or have a hard time competing in. Finding that profitable niche is one of the hardest things anyone can do, but it really is the key to your success.

The Start of My Entrepreneurial Journey

My journey wasn’t about luck but about strategic focus, relentless execution, and a deep understanding of my market. My entrepreneurial journey began after I had a successful 8-year career at Xerox, where I was the top sales representative. While I appreciated the corporate experience, I had always known I wanted to forge my path as a business owner, and after working for a big company, I knew that a successful small business was about finding a niche that others had overlooked.

A Small Niche Was Always on My Mind

My first venture was a digital printing company, which at the time was a brand-new type of technology that allowed for the first-ever print-on-demand capability. Starting and building this company was a small but crucial step that taught me valuable lessons about business ownership in that a niche and high profit margins are great, but you also need scale. Although the digital printing company was modest, generating around $400,000 in sales with an impressive 60% margin, it wasn’t substantial enough to be a long-term business I was interested in.

Trying to Find a True Niche Is Really Hard

The real learning came with my subsequent ventures. I founded ExpertSeeker, a company that placed high-end technical temporary consultants in Fortune 500 companies, which eventually generated $6 million in revenue with deceit margins. The company entered a 10-year industry growth cycle in the marketplace, which enabled us to succeed and the resulting profit was excellent.

Luckily, the old saying that a rising tide will lift all boats allowed us to have fantastic results but it also covered up our lack of a real niche. At Expertseeker, instead of being a “body shop that placed all types of people”, I attempted to differentiate ourselves by focusing on placing the most expensive consultants into large Fortune 500 companies. However, we were still competing against large competitors with extensive contracts, and our clients didn’t view what we did as a unique enough niche.

I quickly realized that simply being in a growing market doesn’t guarantee long-term success. Eventually, the industry slowed down, and so did we. There was considerable market pressure on us that made me think that the tide was going out and may never come back again. I decided it was time to close the company slowly and focus on another venture I had started earlier.

Is a Regional Market a Niche?

A few years into starting EXPERTseeker, I started a company I hoped I would be able to build and sell in a few years. HealthcareSeeker presented another complex challenge. Targeting the $13 billion temporary nursing temporary market (called Travel Nurses), we initially aimed to specialize in the Northeast. However, we encountered significant obstacles. Each state had different licensing requirements for Registered Nurses, making our regional strategy nearly impossible. What seemed like a niche approach quickly became a national competition against established players.

Then, the 2008 recession brutally exposed the fragility of our business model. HealthcareSeeker.com went from an $11 million annual run rate to just $1 million in three years. This experience underscored a critical lesson: a seemingly recession-proof industry can still be devastatingly vulnerable and we had no niche.

Through these experiences, I developed a fundamental philosophy about successful small businesses: finding your niche is not optional—it’s essential. A true niche isn’t just about being different; it’s about being uniquely valuable in a way that larger competitors cannot easily replicate.

Finding That Market Niche Makes Life So Much Easier

With Financing Solutions, the line of credit company that I co-own, we applied these hard-learned lessons. My business partner and I searched hard for and identified a specific market segment that the larger financial institutions had overlooked. By focusing on these underserved niches, we’ve been able to achieve higher margins and more inexpensive client acquisition.

How to Find Your Market Niche

So how does an entrepreneur find their niche? It’s a deliberate, ongoing process that requires constant tweaking. Start by examining your existing customers. What industries are they from? Why do they choose you over competitors? What unique needs do they have that aren’t being met by larger companies? We are in a battle every time for clients.

Margins are the ultimate indicator of a successful niche. If you can charge more than your competitors while also delivering exceptional value, you’ve found your sweet spot

After You Find Your Niche, It’s about Exceptional Business Execution

Business execution is the often overlooked hero of business success. While entrepreneurs love the creative phase of starting a business, the day-to-day execution is where real success is created.

In a small business, owners must be deeply involved in execution without becoming micromanagers. The goal is strategic oversight, not controlling every minute detail.

The owner should continue to look to diversify your niches to mitigate risk. While focusing intensely on one area can be profitable, being entirely dependent on a single market segment can be dangerous.

Economic shifts can quickly transform a thriving niche into a struggling business. When evaluating potential niches, utilize tools like Google Trends to gain insight into market dynamics. Know your competitors’ type of customers. Understand why they choose certain providers. These insights can reveal untapped opportunities. The ultimate reward for finding your niche goes beyond immediate profits.

When it’s time to sell your business, companies with clear, profitable niches command higher prices. Investors value businesses that have demonstrated the ability to carve out and dominate specific market segments.

Being The Best In Your Niche is How You Beat the Big Guys

My journey has taught me that successful entrepreneurship is not about having the biggest company, but about being the best in a specific area. It’s about understanding your unique value proposition and relentlessly pursuing it. For aspiring entrepreneurs, my advice is simple: be patient, be curious, and be willing to pivot.

Your first niche might not be your final one. Continuous learning and adaptation are the true markers of business success. Whether you’re running a $1 million or $25 million company, the principles remain the same. Find your niche, execute brilliantly, and never stop refining your niche.

To fellow business owners: embrace the challenge of finding your unique market position. It’s not just a strategy—it’s your path to sustainable success.

About the Author

Stephen Halasnik is currently the co-owners of Financing Solutions, a leading provider of unsecured business lines of credit, and Elite Funeral Funding. Over 30 years, Mr. Halasnik has built 7 companies in the $5 million to $25 million range with two of those companies making the INC 500 fastest growing list.