Any given market in its entirety is simply too vast for any business but the largest of corporations to properly undertake. Therefore, the most lucrative strategy for smaller businesses is dividing the potential demand into different manageable market niches, from which you can offer specialized goods and services, for attracting a specific group of those prospective clients.
There are, without a doubt, some types of products or services for which you are particularly suited to providing. Have a good look at the market, and you will be certain to find some ideal opportunities.
So what does finding a niche really mean for your small business? Identifying your small business niche means that you are discovering a distinct corner in the market, for your business to provide to a certain specific customer interest – and then capitalizing on it. It means that you find that one special spot within the business world where you stand out the most.
Now that you know exactly what a niche is, there are certain things that you need to find out about yourself and your small business before you take a look at that ever-reaching industry you’re looking to tackle.
* What is my company good at/what am I good at? When you answer this question, have a good look at your skills, and those within your current business. Find the areas in which your strongest skills lie, and list them. You may be surprised at what you discover. Performing this type of inventory really brings out the strengths as well as the potential of your business.
* What do I enjoy doing? What are the things that you love to do the most both in a business scenario, or even when there is not a profit available. The best place to start looking, is at your hobbies. These are the things that you enjoy the most, and into which you’re likely willing to invest a fairly significant amount of money. Therefore, you can potentially translate this particular passion into profit. This will not only make your business a more enjoyable venture, but it will also provide you with additional stamina and focus, which is crucial in starting a new business, or redirecting the focus of an existing business.
* What is needed? Now that you know what you can do well, and what you like to do, it’s important to assess these things with regards to what customers are willing to buy.
To find out what is needed, you’ll want to look into your potential customers, you’ll need to examine what is already being purchased, and consider trends for the future. Sound daunting? Actually, it’s simpler than you think.
As you research a niche for your own operation, perform a market survey and contemplate its results in order to discover the areas which have already been adequately saturated by your competitors. Place all of the gathered information into a table or a graph in order to illustrate where openings may exist for your products or services. Concentrate on finding the proper arrangement of products, services, quality, and price, in order to be certain that competition is as indirect as possible.
Regrettably, there is no universally guaranteed strategy for making those comparisons, however, the more thorough your examinations of the marketplace, the more accurate, practical, and successful your factual information and your “gut” instincts will be. The reason for the lack of a cast iron formula for discovering where competition is the most thin is due to the vast range in the desired attributes within any industry, as well as a certain imaginative element which simply cannot be formalized. There needs to be a proper balance between competition, and actual client interest in your product or service.
As you brainstorm for fantastic small business niche ideas, keep in mind that the heart of any successful venture is providing a product or a service that will be purchased in quantity by others. To do this, you will need to satisfy the needs of your target market, and in return, your target market will keep your small business healthy, happy, and (best of all) profitable.
By designing a quality database (or having one designed for you by a professional in the industry), you will be better able to sift through all of the market information available, in order to make a qualified decision about particular market segments which may not otherwise be obvious.
For example, do clients within a certain geographic region, or government agency or department typically buy products combining high quality and high price, or does that area look for the more “economical” choice? Do the customers from the market niche that you are considering tend to utilize customer service opportunities on a more regular basis? When you have the answer to these questions, you will be able to custom-tailor your business to meet the needs of that niche, making your business the obvious choice.
But where does one find all of this spectacularly handy information? The Internet is a natural, and highly effective solution. The Internet has become possibly the most broad and valuable source of current information for today’s small business. If you were a corporation, it would be easy to simply hire a team to discover the proper niche in the market for your business, however, as a small business, certain financial limitations step into place. Therefore, the Internet provides you with a tool to somewhat level the playing field. You can take all the information gathered by corporations, large companies, small enterprises, and home businesses alike, and apply them to your own business in order to discover what the world has to offer you.
Information about almost any product or service available around the globe is simply a mouse-click away. Brainstorm, ponder, and research all of the questions that can be relevant to your market, and then use the Internet to narrow down all of the information
Remember, though, once you do target a new niche market, make certain that this niche doesn’t conflict with your overall business plan. Your niche has to be within the realm of possibilities for your company and your potential.
Finding your own little niche in the enormous marketplace is a fantastic way to maximize the success potential of your small business. Primarily because your largest direct competitor… is you!
About the author:
Robert Moment is a successful master business and success strategist and author of “It Only Takes a Moment to Score”, which is currently available at Amazon.com and Barnes and Noble. Robert show entrepreneurs how to avoid becoming a statistic and turn their ideas into wealth and have FUN ! Grab a copy of his Free Special Report, “17 Profitable Ways to Turn Your Content into Money”. Visit: http://www.sellintegrity.com