What can you do to ensure you enter markets that are bursting with opportunity?
Whether you’re pivoting, adding a new line of service or simply refining your existing market…
…you want to make sure the market you pick has urgent, unmet needs you can fulfill…at a high margin.
To be sure I go down that path, I created a framework called the “10/1000 principle”.
It’s a mental model designed to help you pick consulting markets with high potential.
Here’s an overview of how it works:
When you pick a market segment, make sure there are at least 1,000 potential clients in that segment. Go as narrow as possible.
Make sure there are at least 10 competitors (but not more than 30) solving the same market problem your firm solve.
The idea is to ensure your chosen market segment is big enough to provide you with sales opportunities but at the same time, NOT teeming with competition.
Some level of competition is a positive because it indicates that there is demand for those services.
Now, if there are around 10 competitors in a market of 1,000 firms you can be reasonably certain that those 10 competitors aren’t serving the entire market. Small consulting firms typically serve 10-20 clients in a year on average.
And so…that means there’s space for your firm to land clients and grow your business.
Now, here’s a caveat:
The “10/1000 principle” is a…principle. Don’t always take it literally. If you’re targeting Fortune 500 companies, for example, you can’t have 1,000 firms in your market.
So apply the *idea* behind the principle rather than the literal numbers (10, 1000) to find ideal, untapped market segments for your business.
Ready to Land $100k+ clients consistently without burning out? Schedule a call and let me show you how.
Image credit: Leon Zernitsky