There are plenty of niches where the total market is smaller than a thousand users. It simply isn't worth a startup or existing businesses time.
For example I know a guy who sells detailed study guides for software engineering subjects tailored to his university. Even if he captured 100% of the market he would have maybe 300 paying customers.
Last time I spoke with him he was earning around 20k from the guides and another 30k from tutoring the students. An extra $50k on the side as an individual is massive but it's not really worth it to a growth focused business.
For example I know a guy who sells detailed study guides for software engineering subjects tailored to his university. Even if he captured 100% of the market he would have maybe 300 paying customers.
Last time I spoke with him he was earning around 20k from the guides and another 30k from tutoring the students. An extra $50k on the side as an individual is massive but it's not really worth it to a growth focused business.