What I've learned so far as a freelance .....

[Dave A]

I think the single biggest challenge of this is identifying the niche.

... so is the "generalist" phase part of finding our niche? Maybe rather, can a generalist phase be used effectively as a stepping stone towards the hedgehog concept?

In my case it probably was. My trouble was I didn't keep it down to 4 years because I didn't know the importance of identifying a niche to focus on.

So perhaps the generalist phase applied correctly should really be considered a search for the right niche.

[duncan drennan]

To take this conversation in a slightly different direction...

How did you go about identifying your particular niche?

I (personally) have an idea about where things could be leading to for me. Figuring out the size of the market and the value of that direction will prove to be the complicated part

[Dave A]

Again, applicable to my circumstance. I was limited by the need to start generating an income fast.

I had two basic criteria:

• Existing niches within my skill set and experience, and
• Niches with identifiable clients that produce regular ongoing income.

Probably the only thing that has changed now is that I have the time to look at niches where I can acquire the skills. But generally, if I'm going to add a niche, I tend to look at niches where it leverages something within my existing operations, be that clients or some internal operations aspect.

This produces a short list. From there I research the market and do a SWOT analysis to see if I can develop a viable proposition. Some of the basic things I look for are:

• Can I identify a unique selling proposition (something that distinguishes me from others in that market)?
• Can I do it profitably?
• Is there growth potential?
• What are the capital requirements?
• Who is currently number 1 and 2?