The Best Strategy to Stand Out in Today's Competitive Market May Not Be What You Think How do you gain and sustain a competitive advantage in an overcrowded market?
By Arthur Wang Edited by Kara McIntyre
Key Takeaways
- Small businesses, especially solo ventures, dominate the U.S. market, with gig economy seeing significant growth.
- Focusing on super niche markets and offering personalized services can lead to more profitable and engaged customers, with studies showing fully connected customers are more valuable than merely satisfied ones.
Opinions expressed by Entrepreneur contributors are their own.
According to the U.S. Small Business Association, 99.9% of all U.S. firms are classified as small businesses. Of the more than 33 million small businesses, 27.1 million are solo ventures without staff. By 2027, an estimated 87.5 million freelancers will comprise 50.9% of the entire U.S. workforce. Meanwhile, Bank of America disclosed a 3.8% growth in customers receiving direct deposits from gig platforms in March 2024, exceeding the previous peak in 2022.
These figures indicate that more and more people are leaving traditional employment to pursue other income-generating means so they can live on their own terms with greater freedom. These are ordinary individuals making money out of their skills and passion in their own way. I call them the everyday entrepreneurs.
For those just starting out, you may wonder, "How do you compete in a market saturated with products and solutions to every imaginable problem? And how can you thrive and survive in such a highly competitive environment?"
My approach is to focus on a super niche and develop the required expertise to deeply understand and fulfill their specific needs. I built Fud, a social hustling community and app, to specifically help first-time hustlers and aspiring entrepreneurs achieve their dreams. Currently, around 80% of Fud users are newbies.
The problem is many successful entrepreneurs today highlight their achievements on social media without truthfully sharing their struggles to reach that level of success. This trend turns their content into mere entertainment, and without knowing their full story, can discourage, mislead or overwhelm beginners.
That's why at Fud, we promote transparency and honesty. We recognize the challenges and hard work of everyday entrepreneurs in starting and managing a business. At the same time, we believe that with the proper mindset, strong support system and the right tools, reaching your goals is achievable.
Related: 3 Ways to Stand Out from Competitors
Less is more profitable
The key in standing out is to dedicate your efforts to a super niche while intentionally avoiding other niches. This may seem counterintuitive. You may think, "Isn't it more profitable to attract every potential customer out there? Wouldn't you catch more fish by casting a wider net?"
Well, not everyone will be interested in what you offer, and that's perfectly fine. Your focus is to find the right market whose needs align with your brand or who share your values. By targeting this smaller segment, you can provide more personalized services, create a stronger emotional connection and better meet their expectations, driving their most profitable behaviors.
A study published in Harvard Business Review revealed that customers who are fully connected with a brand are 52% more valuable than those who are just highly satisfied. Hence, building relationships, gaining the trust of a small community and aligning with their motivations result in more engaged and more profitable customers than serving a general audience.
Start by choosing a small, specific segment of the market that really sparks your interest. It should be something you're genuinely passionate about because that passion will keep you going, especially when things get tough.
For me, it's celebrating everyday entrepreneurship. I have always been intrigued and inspired by people who come up with interesting and uncommon ways to make money and succeed at it. It doesn't have to be a seven-figure business or a worldwide phenomenon. Mastering your craft and excelling at any hustle is enough to be recognized and be an inspiration to others.
Related: How to Stand Out With Confidence and Achieve Your Potential
Invest in yourself
To master your chosen niche, you need to learn the skills that matter, use tools that work and maximize your resources. Don't worry if you're not yet an expert or have limited funds. Your willingness to learn and grow will guide you on the right path.
Fortunately, the vast range of online content about various topics and in different forms make learning more accessible and affordable to the average person. You can now attend live workshops, enroll in online courses and join virtual communities to master new skills and monetize them right away. Having said that, you should also be capable of distinguishing credible information from misleading content to avoid scams.
Be a painkiller
Immerse yourself in your super niche to understand what their pain is and find a solution to it. I do this by engaging with the Fud community, personally interviewing young business owners, side hustlers and parent entrepreneurs.
No journey is exactly the same, but by listening to their experiences, I notice common patterns. They share similar problems, questions and concerns. Most of them would have wanted to have a mentor when they were starting out to show them the ropes, motivate and hold them accountable, which would have saved them precious time and resources.
With Fud, users gain access to no-frills step-by-step guides, tips and resources from mentors, experts and fellow hustlers within the community. It's this exchange of knowledge and insights that fosters growth, support and collaboration within the group.
Related: 4 Simple Tips for Standing Out in the Crowded Startup World
Share your journey
As a beginner, you can choose to document your journey and share it with your audience in real-time. Posting your experience on social media and letting others know your struggles and how you overcame them can connect you more deeply with your super niche and inspire them to start their own journey.
It doesn't matter if you're into content creation, digital marketing, gig work, freelancing or starting your own business. Whatever you are going through, there is an audience who can relate to it and want to learn from you. Just make sure you are creating relevant and genuine content.
When you focus all your energy and resources on mastering your craft and understanding your super niche market, you eventually become the best at it. You become better at identifying and solving problems, anticipating potential challenges and communicating with your customers effectively. Hence, you offer distinct value and personalized service to your audience, becoming your sustainable competitive advantage.
