How do you identify the best niches to provide solutions for?
I look for digital niches—those that are entirely online or do most of their business online—because lead sourcing is easy and they're usually technically minded enough to understand your solution's value without being so technical they could build it themselves. I also target high‑ticket industries where you can charge a lot, like a managed service provider billing $1,500 per month on a one‑year minimum term ($18,000 ACV). Landing one client justifies several months of your expenses. Finally, I avoid heavily regulated fields like healthcare, legal, or finance because they require data anonymization and compliance work I don't want to handle.
He explains that IT companies are service businesses and follow the same funnel as any other service business: lead generation, sales (discovery/scoping call), conversion (proposal/agreement/invoice), onboarding (kickoff call), fulfillment (building IT systems), and retention (ongoing management/managed service). Because the funnel is universal, you can adapt systems from other niches—cold‑email, speed‑to‑lead (PPC), content (SEO), automated referral/follow‑up/reactivation, proposal generator, asset generator, CRM, sales admin, webhook‑triggered kickoff calls, AI‑generated project briefs, and a template library for one‑click implementation. The key is to take a bird’s‑eye view, draw inspiration from adjacent niches, and teach the client to fish rather than give them a fish.
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Don’t try to fully master a niche before you start—use outreach and sales calls to learn its internal processes, pain points, and sales cycle. You can gather only high‑level insights from ChatGPT or YouTube, but real understanding comes from actual conversations. Leverage your own background as social proof: if you’ve worked in B2B LED manufacturing, you can confidently offer AI‑powered lead‑generation, cold‑email, and automation services to similar product‑based businesses, citing specific results you’ve delivered. This approach should be one of the three niches you pursue.
I don't actually work with in‑person industries, so I can't scrape them. You can't scrape leads that don't have an online presence to begin with. So you need to pick industries that already have an online footprint. Construction and agriculture do have some online presence, but it's far less than digital agencies. That said, there are benefits: you can pitch cold, find an inroad through a few local specialists, and then build relationship‑, affiliate‑, or referral‑based campaigns with them, which can give you access to a much wider market. I've done a fair amount of this.
It's a common problem for beginners to spend too much time thinking about the business model instead of actually doing it. You're likely stuck in your head wondering what niche to pick, how to reach people, and which platforms to use. Rather than overthinking, you should test an idea in the market. Pick three things: choose an outreach minimum per day on platforms you have experience with—like DMs on Instagram, X, LinkedIn, communities, Reddit—and run it for a month without changing anything. After 30 days, if you do about 10 pieces of outreach per platform, you'll have contacted nearly 1,000 people, giving you real data to inform your next step. For example, you might find that your web development offer converts at 2.9% while your cyber offer doesn't perform as well, letting you focus on what works. This approach turns you into a scientist of your own life, gradually carving out the solution space and increasing your chances of success.