Who is your product for? If you answered "everyone," we need to talk. The biggest mistake founders make is targeting too broad an audience, creating products that don't deeply resonate with anyone and marketing messages that fail to convert.

Successful SaaS products solve specific problems for specific people. Finding your niche isn't just helpful—it's critical for standing out in today's crowded marketplace.

Start by identifying *pain points*—problems people actively try to solve without good solutions. For example, small law firms struggling with client communications across multiple platforms. That's a pain point and potential opportunity if existing solutions are inadequate or too complex.

To find these pain points effectively:

- Browse industry forums and social media groups where your potential users gather

- Analyze reviews of existing products, looking for recurring complaints

- Look for workarounds people have created—these indicate unmet needs

- Pay attention to questions that come up repeatedly in professional communities

Next, consider *underserved markets*—groups overlooked by larger companies because they're too small or niche. While these markets might seem limited, they can be highly profitable when served well, with less competition and higher customer loyalty.

For instance, many project management tools target general businesses, but few focus specifically on creative agencies' unique workflows. If you understand that industry, there's your opportunity to create something tailored to their specific needs.

As Paul Graham said: "It's better to have 100 people who love your product than a million who kind of like it." This approach not only makes marketing easier but often leads to passionate users who become advocates for your product.

Once you've identified a potential niche, define your *ideal customer persona* in detail. Instead of "small business owners," try: "Solo attorneys handling 20+ cases monthly who struggle with tracking client communications across platforms and frequently miss important client updates."

Consider these elements for your persona:

- Job title and responsibilities

- Company size and industry

- Daily challenges and frustrations

- Goals and aspirations

- Current tools and workarounds

- Decision-making factors

Remember, successful companies like Shopify started with narrow focus (initially helping small businesses sell snowboarding equipment) before expanding. Start specific, then grow—not the reverse. This approach reduces competition, focuses your development efforts, and makes your marketing infinitely more effective.