One of the keys to being a successful Entrepreneur is choosing a niche market. One of the challenges of the World Wide Web is its expansive reach and versatile nature. As the old joke goes, the best thing about the Web is that you can do virtually anything, the worst thing about the Web is that you can do virtually anything.
Even the most successfully developed product cannot be sold to everyone and the reason is that not everyone needs it. That’s why one of the first pieces of advice entrepreneurs get is related with the importance of defining their target market and customer. Finding the right niche is essential for the success of your startup because it determines the potential sales of your product, shapes the framework of your customer related strategies and defines the possibility to dominate the niche in the future.
Defining a niche doesn’t mean that you will not be ready to sell to people out of your target market. It helps you to concentrate your effort, time and money on the right group of people and still to be ready to welcome everyone who is interested.
Pick a starting point that you’re interested in and stick with it until you are successful or you have established that you idea is not as profitable as you originally thought.
Okay, when you begin to market, where do you start? You know you don’t want to compete with some of the large companies on the web. However there are great opportunities for small and nimble operators.
Analyze what you are selling or what you want to sell. It should be in an area that you know a lot about or want of learn about. It may have wide appeal, but think of those it appeals to most. For example, does your product appeal to musicians? That’s a pretty wide market. Narrow it down. Who is most likely to be interested, singers or instrumentalists? From there you might want or need to narrow it even further. For example, your product might appeal to musicians of a certain age, or musicians who favor a certain kind of music or even a particular singer.
After narrowing it down as far as you can, think of appropriate keywords. Check with Google to see how many sites come up using these keywords. Next use a site that tracks keyword usage, such as Google Keyword Planner or Word Tracker to see if there are plenty of users looking for that information. If there are enough potential customers and the competition is low, you may have found your niche.
After you have chosen your niche, try to use it in your Website title. This can help your Website ranking. Another tool for choosing a niche is to study the competition and find out how to make your site unique.
Choosing a niche will help your Website stand out. Find one with plenty of potential customers and little competition and you have a very good chance of watching your business grow.
I have listed out 6 of the key points to getting started with finding your niche for business.
1 Know what you are selling
It is clear that you fundamentally know your product – it is your creation, but make sure that you look at it from the customer’s point of view. Know what you are offering and you will be able to determine who will be buying it. Know why you are choosing the niche and make sure that the product you offer is the right product for this market place. No marketing strategy can sell systematically your product to the people who have no or less interest in it. Remember that where there is demand there is supply. But in order to grow, your business must make profit and the profit is determined by the price of your product. The relationship between the demand and supply in specific niche, along with taking under consideration the competition, will help you determine if the niche you want to enter is the right for your startup.
2 Do your research
In order to find their startup’s niche entrepreneurs need to do the right amount of research. By collecting some useful data on the market situations, needs and customer’s solvency, entrepreneurs can help themselves to design marketing strategy which really will work in the targeted niche market. But as far as we are talking about entrepreneurship and startups, we all know that when there is innovation there is a possibility to create a whole new business path – respectively and a business niche.
3 Trust your vision
The niche market you are aiming for must have some kind of bound with your own personal vision, goals and business understanding. If you need to compromise with your business understanding and approach and completely change the course of your startup in order to impress the targeted customers, probably you are aiming at the wrong market. As an entrepreneur, you should trust your intuition and believe in your vision.
4 Your business model matters for your niche market
The development of strong customer relations takes time and uses different approaches according to the business model you are using for your startup. Running a B2B or B2C business determines the niche strategy you should develop for your startup.
5 Be aware of the limits
How far you can go? When choosing your niche, make sure that you will have the ability to grow in this niche. Entrepreneurs run companies which are to grow and the target niche market should be able to expand as long as the company’s products and services develop.
6 Create niche marketing strategy
After you are aware of the opportunity which your niche is able to give to your startup it is the time to think about the uniqueness of your niche marketing. Knowing your customer is the number one thing which marketers have to work on. Developing niche marketing strategy has its own advantages and saves money and effort. Make sure that your startups message will be sent to the right people in the right way.
Other things you should also consider
How many competitors are competing for your customers’ business?
If the niche market is over-saturated with competitors, it will be both difficult for you to stand out and also difficult to get funding. More importantly, if you reach for a broad market, you will need more financing than if you pick a more targeted, niche market. Understanding your competition is critical to success.
How does your business compare to your competitors?
Ultimately, once you’ve defined your niche market, identified a need, and assessed your competition, you should evaluate whether the value proposition you provide is robust enough to cut through the noise and be attractive to your potential customers. Keep in mind that price isn’t value – it’s very difficult to compete on price alone.