The US Small Business Defense Office notes that in 2018, approximately 30.2 million small businesses exist in the United States alone. While not all are niche businesses, many of the newer startups tend to move in this direction.
The low start-up cost, coupled with the relative ease of marketing, means that there are fewer barriers to entry. That being said, if you do not want to end the number of companies that will not survive in their first year, you must carefully choose your niche.
Let’s see how to do just that.
Marketing to an individual
Before we go any further, let’s take a minute to define the niche activities. In simple terms, a niche business is one that focuses on a specific product in a subset of the market. Here are some examples to give you a better idea of what we are talking about:
All kinds of organic products, sugar free and lactose free
Monthly dog food delivery service
Pet clothing accessories
All kinds of standard products created in a non-standard way (eg “organic” straws instead of plastic straws)
Motivational Guides for Introverts …
You get the point. A product or service that targets people (or companies) with a common characteristic.
Of course, selling anything requires a certain level of exposure. Niche companies rely heavily on marketing to market their product or service to their type of customer. This specificity is a double-edged sword.
On the plus side, it’s not that hard to look for and develop a marketing strategy that’s essentially focused on one customer. On top of that, if you have an innovative solution, you probably will not have to deal with a severe competitive climate in the beginning.
The obvious disadvantage of marketing for an individual is that there is not always a lot of room for growth. This means that you will often have to think about how to grow in other niches and create a full-fledged business by not remaining a single producing company.
But it’s a sweet concern for an already established niche sector. Let’s see how to start this journey.
Find your niche in 4 easy steps
So, how do you find a niche to start a business? It’s not as simple as doing a search on Google, but it does not have to be as complicated as developing a business plan in its own right.
Since few of us have the time or resources to search for a niche by trial and error, we are going to review a handful of things that hopefully will help you streamline this process and lead you to a niche in which you can succeed.
1. Look for what you like and what can be profitable
Many motivational seminars devote a lot of time to passion. Finding a hobby or hobby that excites you gives you an escape. However, if you really like doing something, why not try to make money?
Marketing Magazine mentions that passion is essential to success in a professional environment. When looking at niches, passion can be better defined as the meeting point of interest and pleasure.
2. Do the basic work needed
Imagine at this point you have some potential ideas about what you want to do. Like it or not, now is the time to roll up your sleeves and get into the search.
Conducting in-depth research on your potential target audience, as well as successes and failures in the field, can help you determine if your niche makes sense or makes sense.
Here’s what you can do:
Target Audience: Every marketer will tell you that knowing the target audience is the key to success for any business. In addition to speaking in person with potential customers, you can consult Quora, Reddit or other specialized forums in which your target audience is suspended. Here are some additional ideas on how to learn more about your target audience.
Find competitors: examine your competitors. If you do not have direct competitors, look at companies offering similar products / services in a comparable niche. Look at successful businesses and those that fail. If you are able to discover the reasons for these opposite trajectories, you will have a good idea if you have the opportunity to avoid failure and replicate their success.
Keyword search: In this context, the keyword search is intended to select keywords that users could use to search for your product or service. At this point, you are only interested in the volume to determine if there is a potential interest and trends indicating whether the niche is becoming more or less popular.
If you do all of the above and the results look promising, it’s time to refine your business idea.
3. Refine your business idea
Here are some things a new startup can use to tweak their business idea:
- Define exactly what you offer and what type of need / problem it solves or satisfies
- Define your target audience (demographics, psychographics, challenges and pain points for which you can help them)
- Define the price and payment model (if necessary, membership, weekly / monthly / annual subscriptions)
- Sort the channels with which you want to start marketing your product (Facebook PPC, Google Ads, affiliate marketing, Instagram promotion, content marketing, etc.).
When you have it covered, before you fully engage, it’s not a bad idea to test the market first.
4. Test the market
Testing the market is the last step in determining whether you have found a brilliant idea. Nobody wants to spend hours creating a site and attracting traffic to realize that it’s marketing.
Here is a possible solution to run a test:
Search for a similar product and view its sales page: You want to create a mockup of their sales page. It is not necessary to be perfect here; it just has to look like a legitimate sales page.
Create a fake “Buy” button: You do not have a product to sell yet, but you can create a “Buy Now” button leading to a page saying “Sorry, this product is out of stock.” to try to sell anything, you can simply ask people to give their opinion or ask for their email address to indicate that the product is available.
Generate targeted traffic: If you have the budget, the fastest way to get initial traffic to your landing page is to use Facebook, PPC or other paid methods.
Check the numbers: You can use the information provided by Google Analytics to estimate their interest in the product (by checking statistics such as the time on the page) and the conversion rate.
This is not a foolproof method that works in all scenarios, but it is a fairly simple way to test the market and assess whether the business can be profitable.