When starting a new business, one of the first things you need to do is to define who your target market will be. A niche market allows you to define a very specific group of people who you will market your products or services to.
Not sure of how to define your niche market? We’ve put together a list of steps you can take to determine your business niche:
1. Market Research
Before jumping into business, you need to understand who you will be selling your products or services to, which is where marketing research comes in. Marketing research determines who the target demographic is, what problems your target audience needs a solution for, and a better understanding of what they value in a company, product or service. Figure out not only who has a need for your product or service, but also who is most likely to buy it. Think about the following demographic factors as you determine who you will be marketing to:
2. Look at Your Competition
Look at what your competition is doing (or isn’t doing) to find a niche that is missing from the marketplace. Make a list of all your competitors and inspect what they do well and what they are failing to do.
Determine what it is that sets you apart from the competition. Do you provide a service, feature or product that can’t be found with the competition? Are your prices cheaper? Do their customers repeatedly complain about the same issues?
You can research the competition by looking at their social media, reading online reviews, attending a trade show, or even shopping their location. See if you can find a unique angle that no one else is focusing on to see how you can improve what the current competition is doing. If you have something that your customers won’t find with any other company, you just found your niche.
3. Test Your Niche Market for Profitability
Once you have a niche idea, it’s important to test your idea with your targeted market to determine if it will be profitable. Test the idea by using inexpensive marketing tactics such as: advertisements on social media, blogging, and attending trade shows to see if your target audience shows any interest.
If you do find that people are showing interest in your idea, offer them a sample product or a free consultation. Letting people try your product to prove its value will give you the best indication if your idea will be a success.
If you implement these tips, you will be on your way to coming up with the perfect niche for your business.
For more information about starting and growing your business, contact a Nevada Corporate Headquarters representative at 1-800-508-1729, Monday thru Friday, 8 am – 5 pm PST.