A niche market is all about finding the audience segment who are underserved. It exhibits that there is a gap in the specialized domain within the broader market that needs to be filled by a small business. If it aligns with your interests and passion, you can pick it after researching the market and testing it.
Let’s get into the details of how you can identify your niche market before starting your business so you could have a better chance to succeed.
The right place to find the niche starts with your skill set and experience. If you find something more interesting and you’re good at it, you can use it as a clue to determine the niche for your small business. It indicates that you can retain an unquestionable position in the market when you try to sell something.
In a niche market, it’s important to identify the problem faced by your target audience. For instance, in the cat and dog accessories industry, your customers want a specific type of collar for their dogs which is not available usually in the market. You can pick the same problem, analyze how it correlates with your interests, and come up with an idea to deliver the solution.
Researching the market will help you to identify the demand for the product and its competitors. You can use tools like Google Trend, Exploding Topics, and answer the public platform to find the market around your search term. For instance, if you’re looking to launch your business in the beauty industry by choosing the product Bakuchiol, on answer the public platform, you can see the related terms to the given products such as Bakuchiol for acne, body, etc.
To determine the profitability, you need to analyze the nature of the product, whether it’s a luxury item or you want to sell at moderate rates. You can consult resources like Amazon (for products, agency directories (for services), and G2 (for software) for evaluating the pricing structure for your products.
During the testing process, use the same pricing and packaging that resonate with your brand identity and the interest of your customers. You can place your product in the retail store as free samples or create a separate page for you on your website in case of an e-commerce store where your customer could easily find you.
When you confirm the viability of a niche regarding customer response and demand in the market, it’s time to develop a complete plan to launch your business. You need to pay attention to the conditions in the market so you can survive & thrive easily and compete with your competitors in a better way.
Starting a business requires a lot of time, energy, and finance that must be streamlined with the market and customer demands. It’s important to intensely research the market and find out what niche in the broader market segment is underserved and needs immediate attention to fill the gap. Take some assistance from online platforms such as asking the public and exploding topics to determine your competitors and packaging strategies before launching your business.