A quick&dirty math approach: At a very basic level, you're working with: potential_revenue = sum(total_market) * P(customer) * LTV_over_period (LTV usually s

A quick&dirty math approach: At a very basic level, you're working with: potential_revenue = sum(total_market) * P(customer) * LTV_over_period (LTV usually stands for lifetime value of customer, but we're only considering annual numbers below) First you must must must figure out what the size of your total market is; I assume you already know this number from the top of your head (if not, you've got bigger problems to worry about). At this point, this becomes a problem of function maximization. Assuming your competitor is the market leader, and the rule of thumb for market leaders to take 50% of the total market, what percentage of the remaining clientbase can you realistically capture? Calculate your potential revenue with this scenario. Do the numbers add up for anything sustainable? If no, pivot. With nichification, your total market is obviously smaller, but you might capture it better. Calculate it with markets [A,B,C] ,and see what percentage of these market you have to capture, in order for total revenues to exceed that of non-nichificated product. Can you capture that amount realistically? If yes, nichify; otherwise, proceed with original plan.