23 Aug How to Find Your Niche Market
If you want to package your passion, you must be able to distinguish your idea from the pack and the best way to do that is to create a value proposition many can’t turn away from. Your value proposition is an innovation, service, or feature intended to make your product attractive to customers. The idea behind this is what you use to define your niche market.
It can be as simple as your packaging, customer service, access to your products or as complicated as the design of a Boeing 747.
“What is your niche market?” The first time someone asked me this question some years back, I got really confused. I replied defensively “I am a new business owner, who just wants to sell to anyone who is interested in what I have to offer.” Wrong answer! That, according to my coach was an act of a desperate business owner.
A niche denotes or relates to products, services, or interests that appeal to a small, specialized section of the population. (Wikipedia)
Here’s the thing, most ideas have high growth potential, but it is not enough to develop a fancy product or service, you have to design it with a niche market in mind to appeal to them and make them part with their money.
Customers have unrivalled access to information and a huge range of products and services to choose from. Your innovation ability will constantly be tested, and only the fittest of the pack will stand. Your business fortitude may tire out and require a constant refill. Having a specific niche will help you reserve your energy for who matters most – your tribe.
Here are some tips to help you determine your niche market.
Identify your Skills and Strengths.
It might sound far-fetched but knowing your skills and strengths will help you determine your niche market.
Your personality, skills, roles, and responsibilities all play a part in determining your niche market. Think of the tasks you enjoyed over the years and the benefits of those experiences. It could be Excel spreadsheets, coding, Sunday school teaching, customer service, bricklaying, sewing or financial management.
What type of customers have you worked with in the past? What solutions did you provide? Did you help them solve their business strategies, accounting queries, car problems or health issues?
If your product is speaking to the wrong audience, you will struggle to make sales. Knowing who to sell to is a crucial aspect of business growth, packaging your passion, or idea development.
So how do you determine your target market? Here are some more tips to help you on your way.
What Problem Do You Solve?
You should define how you help people that come your way. It will help you build a picture of the type of people who want to benefit from what you offer. This will also help you narrow down your offering and define your marketing strategies.
Who Do You Wish To Serve?
Create an avatar of the customer you will like to serve. Is it a woman, man, professional, married, tech lover, sports fan or farmers? All these questions will help you streamline the people you should design your product/service for and understand their needs much better.
What Do They Need?
The needs of the people you love to serve may vary. For example, if you want to start a swim school, you may have advanced, intermediate, beginners and nervous swimmers. If your service is designed for just one of these groups in mind, you have alienated a large part of your potential customers – which is not bad if there are enough people in that group. How do you group the people you help? Researching the demographic of your market is vital.
Who Do You Attract?
When I started BFS, I was reluctant to focus on a particular target market; I was casting my net so wide and catching fish I could not serve nor connect with. I took a step back and analyzed the people I attracted and discovered that 80% of my clients are women over 40. Who do you feel at ease with the most – teenagers, men, parents, over 60s, women, students, professional men, salon owners or bankers? Finding your fit will help you create the right products for the right people and make a profit too.
Master The Nichecraft
Targeting the right audience is a primary aspect of your business development and so is ensuring you have a great niche. A niche is a distinct segment of the market. You can have a broad niche or a narrow niche, e.g. swim school for nervous swimmers, swim class for beginners or swim school for all levels. The niche will depend on the size of the broad market, and this requires research to discover the answers.
What Makes You Unique?
I always remind my new and existing clients that what makes them stand out is what will make profit. Find your unique selling point and always put this forward when you sell your passion. Your uniqueness will be appreciated by the right people when you take into consideration the tips listed above.
These tips are not exhaustive; they are some of the ideas you should consider if you want to increase your business reach and ensure your idea/product/service sees the light of day. Many businesses fail in their first year for many reasons, and one of them is because they fail to match the product to the right target market by not focusing on the right niche.
Some businesses have mastered the niche craft to the finest detail and comfortably serve their markets faithfully. Think of the most specific service anyone could want, e.g. grooming for small dogs; I am sure you will find someone that fits the bill.
If you can master your niche by carrying out the right research, studying and understanding what your prospects needs, you will soar beyond your competitors.
Blessings in abundance.
The Idea Catalyst