Niche discovery is so important before you start any business. It’s one of the first steps to consider. Before I can go any further, let me explain what a niche is. It’s a specifically targeted focus on a pre-selected group. It’s an area of expertise or professionalism that you intend to sell to your targeted customer group. It is also a particular trend that you want to take a specific group of targeted customers with problems or needs for which you have the solution or meet their satisfaction. It’s, therefore, essential to make a niche discovery before you start your business.
For instance, some businesses specialise in making signage in the engraving industry. Others produce interior decor. Some make gifts, awards and plaques. Some firms only specialise in manufacturing engraving materials, while others train people in professional engraving. Each of them targets different customer groups with different specific needs. Focusing on a particular group of customers who have problems that require your product or service to solve is a crucial factor you should consider in niche discovery.
Why Should You Make a Niche Discovery?
Niche discovery helps you avoid being a jack of all trades and a master of none. It is one of the causes of failure for most people. You need to focus on a specific group of people with which you can become a master and a known expert. It opens up the opportunity to dominate a fraction of the market and direct all your marketing efforts to that specific area. Remember that spreading wide is one of the reasons why many people, who start businesses, fail to progress.
Secondly, niche discovery experts assert that concentrating on a fraction of the market helps you become a known expert, provided you have the skills, knowledge and support to do your business. Most people love to buy from experts. A person who specialises in engraving gifts for sale is more likely to establish himself as a known expert in that field than the one who combines several other areas.
Doing business without taking the time to make your niche discovery leads to spreading yourself wide. It makes you work too hard to survive the competition. But focusing on a specific market area enables you to quickly explain to people what you do and what your business is all about. It’s, therefore, essential to carry out a niche discovery exercise before you start your business.
What Do You Have to Bear in Mind as You Carry Out your Niche Discovery Exercise?
First of all, decide on a niche where you have a steady demand. Never try out things without researching to find the targeted customer group’s needs. You should know more about their needs, social lives and challenges. Understand how you can find them. Based on the findings, determine what to sell to them to solve their problems. Remember that people buy from you not to please you but to solve their problems.
Secondly, get to know your strengths and skills. How much knowledge and expertise do you have to drive your business to success? In which area is your expertise? These questions can help you know yourself so that you do not enter into any activity where you have insufficient knowledge and where you do not have any skill. A niche where you have more weaknesses than strengths is not for you. Remember that your skills and attributes are essential in the niche discovery process.
Make a Niche Discovery
What Factors Does Your Niche Success Depend On?
In your niche discovery process, you need to know that the success of your niche depends on several factors. They include the following:
♠ The problem of the customer group you intend to help them to solve. You can only sell your products or services to people who want to solve their problems.
♠ The size of the targeted customer group. Is it large enough to support your business? If the targeted number of customers is small, it’s not worth directing your energy on starting a business in a niche where you will struggle to sell your products.
♠ Which strengths, knowledge, and skills do you have to begin the business? It’s vital to decide on a niche where you are good at doing something. That’s when you will enjoy doing business, and that’s when you will find it easier to make a sale.
♠ Does your preferred niche have the potential to create opportunities for you to be innovative? Does it have a lot of competition? Decide on an area where you can market yourself as the best.
♠ Do you have the experience to work within that niche? Do you understand the people in the targeted customer group? What do you have to offer to compel people to buy from you? Remember that people prefer buying from experts and those who have ever done it before.
What Else Should You Know?
♠ In your niche discovery process, focus on the ability and willingness of your targeted group to purchase your products. Are they able and willing to buy? How much can they buy from you? Is the demand in that niche able to sustain you in business?
♠ What’s so special with you that will draw customers to you? Offer something extraordinary, different, better and attractive to beat your competitors. If you cannot find anything unusual to offer in that niche, then better start your business in another field.
♠ Before you decide on your niche, find out whether you will get support within that niche. Are there others from whom you can learn? Remember that you need help to build a vibrant business.
♠ How easy is it to find the potential buyers in that niche? Does it take a lot of resources and effort to convince people to buy? If you start your business in a field where you have to spend enormously to get the customers, it will waste your resources and demoralise you.
Conclusion
As I wind up, I would like to remind you to carry out a niche discovery exercise before starting any business. The best way to promote your business to success is when you know your target group based on your strengths and skills. The success of your business will depend mostly on your niche and your expertise. Research an area where you can quickly become a known expert!
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