The US Small Business Administration Office of Advocacy notes that in 2018, about 30.2 million small businesses exist in America alone. While not every one of them is a niche business, quite a lot of the more recent startups tend to go in that direction.
The low startup cost, combined with the relative ease of marketing, means that there are fewer barriers to enter the market. That being said, if you don’t want to end up fueling the statistic of how many businesses don’t survive their first year, you should carefully choose your niche.
Let’s discuss how to do exactly that.
Marketing to an individual
Before we go any further, let’s take a minute to define niche business. Simply put, a niche business is one which focuses on a specific product within a market subset. Here are some examples to give you a better idea of what we are talking about:
- Specialty chocolates
- All kinds of organic, sugar-free and lactose-free products
- Dog food delivery service on a monthly subscription basis
- All kinds of pet clothing accessories
- All kinds of standard products created in a non-standard way (e.g. “organic” straws instead of plastic ones)
- Motivational guides for introverts…
You get the point. A product or service that targets people (or businesses) with one common characteristic.
Off course, selling anything requires a certain level of exposure. Niche businesses heavily rely on marketing to get the word out about their product or service to their specific customer type. This specificity is a double-edged sword.
On the positive side, it doesn’t take that much work to research and build a marketing strategy for basically one customer persona. On top of that, if you have an innovative solution, you probably won’t have to deal with a harsh competitor climate early on.
The obvious drawback of marketing to an individual is that there isn’t always much room for growth. That means you will often have to think ahead of how you can expand into other niches and build a fully-fledged business by not staying a single product company.
But those are sweet worries of an already established niche business, let’s see how to start that journey.
Finding your niche in 4 easy steps
So how do you find a niche to build a business? It’s not as simple as doing a Google search, but it doesn’t have to be as complicated as putting together a fully-fledged business plan either.
As not many of us have the time or resources to search for a niche through trial and error, we will go over a handful of things that will hopefully help you streamline this process and lead you to a niche you can succeed in.
1. Look for what you like and what can be profitable
Lots of motivational seminars spend quite a bit of time harping on about passion. Finding a hobby or a pastime that you can be passionate about gives you an escape. However, if you really love doing something, why not try and make money out of it?
Marketing Magazine mentions that <a target="_blank" href="https://www.marketingmag.com.au/hubs-c/why-passion-in-business-is-so-important/" target="_blank" …read more
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