Finding a Niche Market for your Business.

As an individual in the business world, you have probably heard the term niche several times. You have heard business experts tell entrepreneurs to find their niche in the market.  

Most entrepreneurs hit the ground running and get their idea into the market as fast as possible then wait to learn from their failures and successes without having a viable niche market in mind. Having a niche market for your business is a success factor.

What is a Niche Market?

A niche market is a specific part of a larger market whose needs and preferences are met through specialized products or services.

A business focuses on this segment whose needs and preferences are probably underserved by their competitors who have a general or broad target audience.

As a business with a focus on a niche market, you tailor your products or services to cater to these unique demands.

Why pursue a niche market?

Susan Ward writes on the Balance that establishing a niche market helps a business gain competitive advantages. She adds that pursuing niche markets helps businesses build customer loyalty and increase revenue/profits through an ignored audience.

As a small business, pursuing the right niche market is a good strategy to set your business apart from your competitors. This way, the specific group of customers you are focusing on chooses your products or services instead of your competitors’.

Reduced competition.

The fact that you are focusing on an underserved group of customers, this means your competition is less.

Reduced competition is a boost for your business and you can run your business without having to worry about the business next door. You won’t have to worry about your competitors undercutting and beating you.

Matthew Speiser on JustBusiness says, with little competition, your chances of succeeding in the market are very high especially if the niche market you find is lucrative.

Focused business efforts.

When you are pursuing a niche market, you are working with a narrower and targeted audience. What this means for your business is the freedom to put as much effort as you can towards other specific business and customer needs with no limitation.  

This means you are able to easily put your focus towards making the best possible product for your specific consumer.  

Providing expertise.

With the ability to concentrate on putting more effort to your business, you might become a specialist in that particular product or service in the market.

This factor influences customer referrals – recommending your services or products. With time, your products or services will reach other underserved consumers in other markets.

Establishing brand loyalty.

It’s easier to build brand loyalty with niche markets because they are narrower – smaller. And, with concentrated effort going into making providing quality products or services, customers will trust your brand.

In a niche market, brands have more frequent interactions with customers. This nurtures repeat customers which is crucial for niche businesses.  

How to find your niche in the market.

Most entrepreneurs say that finding a niche market is difficult and requires a lot of extra effort.

There are so many niche markets in whatever industry and market your business is in. Market experts say that not all niche markets are worth a target. That means you have to find a worthwhile niche that your business can pursue and become more profitable.

1.Identify your interests.

This is where is starts, for those who don’t have a launched business and for those who have a running business.

You probably already know what interests you and what you are passionate about and there is definitely a lot that you are interested in.

Look at how you spend your free time, and the topics or things you love learning about and researching. These will help you determine what your interests and passions are and write a list.

Business experts say that working in something you are not interested in or don’t care much about, increases your quitting chances. Considering your interests and passions will help you choose a direction you will be motivated to invest your time, effort, and energy in.

2.Explore the potential market identifying problems you can solve.

Already knowing the direction you want to take through your interests, explore the market that accommodates your interests. Find out whether there are other people interested in what you are interested in and whether they are enough to support your business.

This brings you down to doing research. The easiest place to do your research is online using tools such as Google AdWords Keyword Tool, Google Trends, etc. Consider using social media platforms such as Facebook, etc.

Search for keywords related to your niche market on these online tools and social media. Check whether there is a significant number of people posting about your niche topics. Look out for online conversations around your niche topics.

Another effective way to do this is by holding one-on-one conversations with people in your target market. Ask people who fit in your target audience what they think about your business. Their perspectives can help you polish your idea.

This search will help you narrow down your areas of interest by recognizing the problems existing in your niche market. Explore these problems and figure out whether you can solve them and if so, choose the specific problem you want to solve for your target audience.

3.Research your competitors.

Every market has competition and you need to find out who you are up against.  The presence of competition shows there is a profitable niche worth pursuing.

Research each competitor that shows up in your search results as you search your niche market keywords. See how each competitor ranks in the search results and explore how they are doing.  

Go through their websites and figure out what they are doing and what they are not doing. Look for opportunities they have missed and see what you could do better to fill the gaps.

Determine ways that will help you stand out from your competitors.

4.Determine profitability.

You probably have an idea of the niche you want to get into. Finding a niche market is one thing and finding a profitable niche market is another.

The niche market you want to pursue should be able to make you money or bring you profits.

If numerous popular sites appear in your search results and are already ranking, this means the market is saturated. There are big players in the market doing well already and this might be a hard nut to crack. The level of competition is very high and fighting through it might not be possible.

If no sites appeared in your niche search results, this is a bad sign. You might be excited thinking there is an opportunity but that is not the case. This shows there is no market and no opportunity to serve in this niche.

However, if the search results are of low quality and small sites, there is an opportunity for you in this niche. There is little competition and you can easily fill in the gaps and find success.

5.Promote your product or service.

Once you have determined that there is profitability in the niche market you want to pursue, it’s time to test the waters.

You need to put your products or services in the market for your prospective customers to see.

Consider creating a website as a landing page with valuable information about your products or services. Use your website blog to create valuable content for your target market. Valuable content generates traffic and these traffic boosts conversions leading to increased revenue through sales.

You can drive traffic to this landing page through paid advertising promoting your business. Use your website blog to create valuable content for your target market

If your traffic and conversions are good, this means you are on the right track. On the other hand, if your traffic and conversions don’t seem to be on track, look at your copy or your marketing message and make necessary changes.  

Final Thoughts…

Most small businesses or startups fail to last in the market for not knowing how to find a viable and profitable niche.  

Finding the right niche for your business in the market helps flourish your small business.