You’ve heard this before
Choosing a niche market is common advice, but it’s worth driving the point home. A niche can be a geographic area, a certain type of client, a specific version of a product or any other variation of an intentionally concentrated effort at a single point in the market. It’s not only a good idea to niche when starting out either. This strategy helps your business avoid obscurity and guides critical product decisions.
You will take a temporary hit in sales
This strategy reduces your sales in the short-run because you’re casting a smaller net. People often take this to mean it’s not working and give up prematurely. There’s a fine line between a temporary hit and choosing a niche that’s too small, so get advice and do research to make sure your target niche is large enough.
Niching is not always the right strategy in the short run
Cash flow may be the most critical thing to your business in the short-run. In this case, it’s probably not a good idea to niche at that point.
Be the best at what you do
A niche allows you to be the expert – not only in your local area but potentially the world. If you choose the right niche and be the best in the world, the odds of you succeeding go up by a lot. This should be obvious, but it’s worth the reminder.
- Look for an underserved subset of your market, your “target market”
- Research and test the market to ensure there’s an opportunity
- Design a product offering and marketing tailored your target market
- Test and continue to develop your product to be superior to generic competitors
- Ease: Tough
- Cost: Free
- Scope: Medium
- Speed: Slow
- Reach: Global