04 Mar What is a Market Niche?
When I talk about starting a cash machine (small business) using skills you already have, it’s about adding to your income the fastest way possible. You may not “love” what you’re doing but if your current money-making skill is marketable, it’s the best way to get started fast. As your business grows you’ll be able to strike out in more directions. At first… keep it simple!
What you need to figure out is how to apply your skills to a market niche. So let’s start by looking at what exactly a “niche” is.
A niche is the subset of a larger market focusing on a specific product or service. It’s designed to meet more specific needs within a market.
By appealing to smaller segments of larger markets, you can more effectively target customers and usually develop a strong and loyal customer base. This is good for building and sustaining your business income.
A bigger niche is harder to market to, and costs more, because the audience is larger with much more varied wants and needs.
In other words, a niche is a smaller segment of a larger market. Let’s look at some examples of larger markets as well as niches.
Health and Wellness is a large market, weight loss is a subset in that market. You can even niche further to weight loss for new mothers.
Finance is another large market, debt reduction is a niche and paying off credit card debt is an even narrower niche within that market.
Think of a bookstore: the large market is the broad area of the store, like “Self-Help,” “Diet,” “Cooking,” “Fitness,” “Health.”
The shelf labels identify the subset of the market. Think “relationships,” “vegetarianism,” “weight training,” “pregnancy.”
Then a niche is a group of a few titles within that subcategory, such as “blending families,” “getting your kids to eat veggies,” “six pack abs,” “eating for two.”).
If you can’t tell if your topic is a large market, subset, or niche, imagine where you’d find your category in a bookstore: On a big sign hanging from the ceiling, on a shelf label, or on the title of a book?
Your goal is to identify a niche within which you can market your wares to a well defined group of people, otherwise known as your target market.
Once you have your particular niche figured out, go online and research potential competitors.
- How are they presenting their widgets?
- What are they doing right?
- What can you improve on?
- How can you differentiate yourself?
Use what you learn to model your business plan and get into action quickly.
Don’t get lost in analysis paralysis! Take action!
P.S. Feel like you need some extra help? Give us a call for a free strategy session because we can let you know what we have for you that suits your particular needs!