Niches Outside SV
TL;DR: Silicon Valley builds for Silicon Valley. Meanwhile, construction, agriculture, manufacturing, and logistics are begging for basic software solutions.
The boring industries have the most money and least competition.
Why SV Misses the Best Opportunities
The Silicon Valley bias:
- Builds for tech workers, marketers, and other startups
- Obsessed with consumer apps and "platforms"
- Assumes everyone works remotely with laptops
- Values "coolness" over profitability
The reality:
- 87% of businesses aren't tech companies
- Most workers don't have desk jobs
- Industries with real problems pay premium prices
- Boring businesses generate boring profit margins
While 1,000 startups compete for venture capital attention, entire industries are still using Excel and paper.
The Goldilocks Industries
Perfect B2B niches have:
- ✅ Established revenue (they already spend on solutions)
- ✅ Clear pain points (obvious inefficiencies)
- ✅ Low tech adoption (still using old methods)
- ✅ Regulatory requirements (they must solve certain problems)
- ✅ Relationship-driven sales (harder for big tech to disrupt)
Avoid:
- ❌ Consumer markets (too competitive, low prices)
- ❌ High-tech industries (already well-served)
- ❌ Price-sensitive markets (race to bottom pricing)
- ❌ Winner-take-all dynamics (network effects favor big players)
15 Profitable Niches SV Ignores
1. Construction & Contracting
The problems: Project delays, cost overruns, coordination chaos Current solutions: Excel, email, paper, phone calls Revenue opportunity: $50-500/month per project
Specific gaps:
- Real-time project progress for homeowners
- Subcontractor scheduling and payment
- Material delivery tracking
- Permit and inspection management
2. Agriculture & Farming
The problems: Weather, crop planning, equipment maintenance, regulations Current solutions: Spreadsheets, government forms, manual tracking Revenue opportunity: $100-2,000/month per farm
Specific gaps:
- Simple crop rotation planning
- Equipment maintenance scheduling
- Regulatory compliance tracking
- Local market price monitoring
3. Healthcare Administration
The problems: Insurance, scheduling, billing, compliance Current solutions: Legacy EMR systems, paper forms Revenue opportunity: $200-2,000/month per practice
Specific gaps:
- Patient intake optimization
- Insurance verification automation
- Billing error detection
- Staff scheduling for small practices
4. Legal Practice Management
The problems: Client communication, document management, time tracking, billing Current solutions: Generic practice management software Revenue opportunity: $100-1,000/month per attorney
Specific gaps:
- Specialized workflows by practice area
- Client portal for case updates
- Automated document generation
- Court deadline tracking
5. Manufacturing & Industrial
The problems: Inventory, maintenance, quality control, safety Current solutions: Custom databases, paper logs Revenue opportunity: $500-5,000/month per facility
Specific gaps:
- Equipment maintenance prediction
- Quality control documentation
- Safety incident reporting
- Supplier performance tracking
6. Transportation & Logistics
The problems: Route optimization, fuel costs, driver management, compliance Current solutions: GPS + spreadsheets Revenue opportunity: $100-1,000/month per fleet
Specific gaps:
- Small fleet management (under 50 vehicles)
- Driver performance tracking
- Fuel cost optimization
- DOT compliance automation
7. Food Service & Restaurants
The problems: Inventory waste, staff scheduling, cost control, compliance Current solutions: POS systems + manual processes Revenue opportunity: $50-500/month per location
Specific gaps:
- Food waste tracking and reduction
- Staff scheduling optimization
- Recipe cost calculation
- Health code compliance tracking
8. Real Estate & Property
The problems: Tenant management, maintenance, marketing, financials Current solutions: Basic property management software Revenue opportunity: $50-200/month per property
Specific gaps:
- Small landlord solutions (under 50 units)
- Maintenance request automation
- Tenant screening workflows
- Investment property analytics
9. Educational Services
The problems: Student management, parent communication, billing, compliance Current solutions: Generic CRM + spreadsheets Revenue opportunity: $100-500/month per school
Specific gaps:
- Parent-teacher communication
- Student progress tracking
- Tuition and payment management
- Regulatory reporting
10. Professional Services
The problems: Client onboarding, project management, billing, proposals Current solutions: Email + documents + time tracking Revenue opportunity: $100-1,000/month per firm
Specific gaps:
- Proposal automation
- Client onboarding workflows
- Project profitability tracking
- Service delivery templates
11. Beauty & Personal Care
The problems: Appointment scheduling, inventory, customer retention, staff management Current solutions: Basic booking systems Revenue opportunity: $50-300/month per salon
Specific gaps:
- Inventory management for products
- Customer preference tracking
- Staff commission calculation
- Marketing automation for retention
12. Automotive Services
The problems: Service scheduling, parts inventory, customer communication, billing Current solutions: Shop management software from the 90s Revenue opportunity: $100-800/month per shop
Specific gaps:
- Service history tracking
- Parts ordering automation
- Customer communication workflows
- Warranty claim processing
13. Fitness & Recreation
The problems: Member management, class scheduling, payment processing, retention Current solutions: Basic gym management software Revenue opportunity: $50-500/month per facility
Specific gaps:
- Small gym/studio management
- Personal trainer scheduling
- Member engagement tracking
- Equipment maintenance logs
14. Home Services
The problems: Scheduling, routing, customer communication, billing Current solutions: Generic field service software Revenue opportunity: $50-300/month per business
Specific gaps:
- Multi-service business management (cleaning + landscaping)
- Seasonal service scheduling
- Customer preference tracking
- Service quality follow-up
15. Retail & E-commerce
The problems: Inventory, customer data, marketing, multi-channel sales Current solutions: Shopify + 20 different tools Revenue opportunity: $100-1,000/month per store
Specific gaps:
- Inventory sync across channels
- Local delivery management
- Customer loyalty programs
- Seasonal demand planning
How to Validate These Niches
Step 1: Find the People (30 min)
- LinkedIn searches for job titles
- Industry association websites
- Facebook groups for the industry
- Local business directories
Step 2: Listen to Problems (1 week)
- Join industry Facebook groups
- Read trade publication comments
- Attend local industry meetups
- Call business owners directly
Step 3: Check Willingness to Pay (1 week)
- Ask what they currently spend on solutions
- Propose a simple service for $50-200/month
- Look at existing vendor pricing
- Check if they have budget line items for "software" or "technology"
Step 4: Validate Technical Feasibility (1 week)
- Can you build an MVP in 4 weeks?
- Are there APIs for data they need?
- Is the workflow simple enough to automate?
The Boring Business Advantage
Why boring beats sexy:
Lower competition
- Fewer startups = less noise in market
- Industry incumbents are slow to innovate
- Big tech doesn't pay attention
Higher prices
- Business customers pay for value, not features
- Less price sensitivity than consumers
- Premium pricing for industry expertise
Stickier customers
- High switching costs (workflows, data, training)
- Relationships matter more than features
- Word-of-mouth referrals within industries
Clearer value proposition
- Obvious ROI (save time/money vs abstract benefits)
- Easier to measure impact
- Business justification is straightforward
Industry Entry Strategy
Phase 1: Become an Insider (Month 1)
- Join 5 industry groups/forums
- Subscribe to 3 trade publications
- Attend 1 industry event/conference
- Have coffee with 10 business owners
Phase 2: Build Credibility (Month 2-3)
- Write content about industry problems
- Offer free analysis/audits
- Participate in industry discussions
- Partner with industry influencers
Phase 3: Launch Simple Solution (Month 4)
- Start with one specific workflow
- Price based on value, not cost
- Use industry terminology
- Focus on ROI and time savings
Common Mistakes in Niche Markets
Assuming they want "innovation"
- They want solutions, not disruption
- Familiar interfaces beat novel ones
- Integration matters more than features
Using tech industry language
- Say "increase efficiency" not "optimize workflows"
- Focus on business outcomes, not technical features
- Use their industry terminology
Building too much too fast
- Start with one painful workflow
- Add features based on usage, not assumptions
- Simple solutions often win over complex ones
Ignoring relationships
- Industry referrals are powerful
- Trade shows and events matter
- Personal relationships beat online marketing
FAQ
Q: How do I learn about industries I don't know? A: Start with trade publications, LinkedIn groups, and industry conferences. Talk to 20 people in the industry.
Q: Won't big companies eventually build solutions for these markets? A: They might, but they'll build generic solutions. Industry-specific expertise is your moat.
Q: How do I price for these markets? A: Start with what they currently spend on manual processes or consultants. Often $100-500/month is reasonable.
Ready to find your niche?
We help founders identify and validate profitable B2B niches outside the Silicon Valley bubble.
Quick Build ($750) • Full Sprint ($7,500)
Internal links:
Ready to discover your market?
Stop chasing imaginary customers. Find markets with real problems, real budgets, and real willingness to pay.
More Market Discovery
Competitor Teardowns
Stop fearing competition. Use this systematic teardown framework to find gaps, steal tactics, and build better products. Complete analysis guide.
TAM/SAM/SOM in 60 Minutes
Skip the consultant deck. Size your market in 60 minutes with real data and practical frameworks that investors actually care about.