This research investigates the relationship between niche strategies and business models, with a focus on tech-based startups/companies. The research makes use of historical cases to identify the relationship. Historical cases are studied by applying the TIS framework to past cases of new technology that achieved technology diffusion. Upon application of niche strategies, the business model and barriers to large-scale diffusion change. These changes are studied to derive two relationships. First, the impact of niche strategies on the business model and second, the relationship between niche strategies and barriers. Based on findings from historical cases, a conceptual framework is built. It is designed to aid in better decision-making for startups or companies that can potentially lead to the large-scale diffusion of their new technology. The framework is employed to trace the business model dynamics along with the evolution of barriers to large-scale diffusion.