Thread by @NeelBParekh

Smaller markets are often easier & better to open up local service businesses in. Mainly bc you can outrank competition wayy quicker.

Money is green whether you make it in NYC or Omaha....go with the less competition.

🧵 below for which city sizes you should pursue and why

I live in LA, which has a population of around 4M people. NYC is at 8.4M and Chicago is at 2.71M. I think of these as “Tier 1” cities, and likely to have tough competition.

Tough = multiple companies with killer SEO and 500+ reviews on Google (depending on your niche)

If you do decide to go after a Tier 1 city, DON'T go after the entire market. You'll waste marketing dollars and be spread thin.

You don't need a ton of customers to make a lot of money in local services, just the right ones. Select specific neighborhoods and hypertarget.

One step down would be cities like:

San Antonio 1.5M
Dallas 1.3M
Austin ~1M
Denver ~700k

These cities are still likely to have some established competition, but not as cutthroat as in the Tier 1 cities. I think of them as “Tier 2” cities.

Tier 2 cities have a handful companies who are killing it on Google with reviews and rankings. Some Tier 2 cities have stiff competition, and others don't...it really depends on the city and niche. There is opportunity to be had here to grow really quickly with the right tactics

The last group would be Tier 3 marketplaces. Examples include:

Nashville (~700k)
Kansas City (~500k)
St Louis (~300k)

Often times (but not always), smaller markets have only one or two serious competitors. That means OPPORTUNITY. You can outrank competition quickly.

Large cities (Tier 1) have every single type of person, but this may not be the case for Tier 3 cities. For Tier 3 cities, you prob need to look at population growth, wealth distribution, and demographic info more to ensure there is enough of your target market living there.

There's opportunity in every market. Your marketing strategy will need to change depending which Tier city you pick.

Its prob going to be easier to rank on SEO in Tier 3 cities, for ex. Tier 1 cities you'll find more labor, but harder to rank. Pros and cons of both sides.