What is a niche market, and how to find yours
A niche market is a focused portion of a market sector. By focusing on a niche market your company is addressing the needs of products or services that are not being offered by larger companies. Basically you are providing a product or service that is not being provided by other companies, whether you invent the product or come up with a new type of service. What you are doing is targeting your business to a certain group of customers. These kinds of companies can be highly successful because the bigger companies that are already established in the industry are not addressing the one particular product or service. For example rather than opening up a cleaning company (the market is already saturated with them) you can open up a specialized cleaning company such as carpet cleaning, blind cleaning, window cleaning or any other type of specialized cleaning.
In order to be successful in niche marketing you must find your niche market. Here are some steps you can take to find your niche market.
Find a niche product or service that you are passionate about. Most people are more successful if they are opening a business that they feel strongly about rather than opening up a business just to do it. If you feel strongly about your business you are more likely going to spend more time and energy in making sure that it succeeds.
Choose a niche product that you have knowledge about. You can look at your current skills, hobbies or products that you know a lot about. This does not mean you have to open a business with one of those ideas but it is easier to start a business that you have some knowledge about. But if you always dreamed of promoting a product you can always gather any information you need on the product before you start promoting. But if you do not have the knowledge on the type of business you want to open then before you do anything you should become an expert in that field.
Define your niche market. To accomplish this you are going to have to do some hands on research to determine if there is a market out there for your product or service, if there is no market for that particular product or service you can still get some good business ideas that would work better from this research.
- Is there sufficient demand for your product or service? Remember you want to stand out from the crowd. You do not want to pick a business that is to broad rather you want to focus on one aspect of the business.
- Key word or phrases research. Think of key words or phrases that you would use to describe your product or service and then do some research online to find out how many people are searching for your type of product or service. This will help you to get a feel if it is in demand or not. For example if only 100 people are searching for key words or phrases related to your product or service then you might want to think about a different product or service.
- Take a survey. You can ask existing customers or other people about items that will help their business or what kinds of things they could use. Be sure to put specifics in the survey about what type of product or service you are offering to get their ideas on if it would be useful or not.
- Create your own selling position. When selling your product or service you want people to come to your place of business rather than somebody else's. To do this you need to come up with something unique that will make you stand out from the crowd. For example a cleaning company might advertise that they fight dust better than the rest or something along those lines.
You need to build and promote your website. Your website should have numerous pages with information about your niche product or service. You will want to develop your site so that people will want to visit it from search engines to gather information but most of all to purchase a product or service from you.