Both beginning entrepreneurs and experienced business owners seek to discover niche markets that align with what their companies have to offer. Unfortunately, some may find it difficult to know where to start when exploring the idea of niche markets. However, several business owners find that three tips can give them the structure they need for doing the groundwork and finding the information that helps them uncover viable niche markets in their areas of interest.
1. Identify Your Strengths
Before finding your next niche market, it pays to spend a bit of time thinking about your strengths. For example, in which areas do you possess excellent skills? About which subjects are you passionate? When you can answer these questions, you will better understand what areas might suit your business expansion into a niche market. Additionally, it will also help to give you the motivation to find a niche that aligns with your interests. Many quickly learn that it takes time to research and develop a niche, so it makes sense that the subject area excites you enough to put in the time and energy to complete your business venture.
2. Study Others in Your Field
Once you know what interests engage you deeply, the next step focuses on researching what other businesses like your own offer in this area. For instance, can you find unmet needs that consumers of the product or service have? Do other companies meet this need somehow, and with what results? What impacts do their actions have on their companies’ bottom lines? This information can hold the key to where you want to focus your energy.
3. Narrow The Prospects and Test
Eventually, you will have a broad list of ideas for areas where a potential niche market could fit into your business. When you want to gain even more valuable information about if a particular niche could suit your company, you can narrow your prospects by seeing what people who currently interact with your proposed niche have to say about their experience. You might find social media helpful in this regard, as many groups exist around a wide assortment of topics, so by reading the comments of those participating in the groups, you will gather more valuable insights. For instance, Howard Mittman, CEO of 888, found a niche with a younger audience and built on it with Bleacher Report. Additionally, you might consider running a survey for readers’ input on their experience with the niche. These answers will prove pivotal as you narrow and refine your focus to one specific area.
When you eventually find a need that you can meet, you can create a solution. Your solution will include a product or service that fills that need for clients. After taking this step, you can begin introducing your new niche to a small audience to test how it works and how the recipients react and respond. Revisions and refinements can occur, and the cycle repeats until you are ready to launch your new product or service line.
When you know your strengths, have done your research, and build a superior solution based on both, you will likely find a sustainable niche market that aligns with your company’s mission and goals.