Choosing A Niche – Is It Really A Niche?


Alongside the mechanics of identifying, supporting and entering niche markets, what are the key factors you’ll need to exploit to succeed? Here’s some key questions you should answer before you go too far with your ‘perfect niche’.





Is there a need, a new opportunity or a customer
problem?

The best niches are ones where there are customers with an itch, a headache or a desire for more. Here’s the best demand elements to check for.

Opportunity – a new market has emerged or a new opportunity
exists in an existing market and a range of new solutions are required to
satisfy the new demand.


Problem – a group of people (or businesses) share a common
problem and need a solution that they can easily adopt.


Need – the niche needs to or needs to find out about
something and needs a focussed solution that provides the information they need.


The main purpose of your niche marketing efforts should be to help your customers solve their headache so that their need for a solution is solved by you and not your competitors.






Do the potential clients actually want the
solution on offer?


The target group of customers you’re aiming at must actually want the solution on offer – not
have a need alone. For example, many thousands of people have a debt problem and
‘need’ to get out of debt – but very few actually ‘want’ to take positive action
to do something about the situation.


The offer has to be just right; look good, sound good, cost good, seem good,
BE good so that your potential customer will ‘want’ it and buy it.


The aim of all your communications, sales messages, emails, product offers,
design or benefit statements is to gently take potential customers along the
journey from slightly interested to the eventual sale result.


Are you trying to leap the Grand
Canyon?


This is no joke, if you’re trying to go for a market that’s way outside your
knowledge zone and very hard to access – you may find yourself spending a lot
of time, money and heartache trying, and trying and trying some more.


You need to set your sights on easier opportunities that make the best use of
your limited resources of time, money and effort. Progress will encourage more progress and the more experienced and skilled you become the easier it will be to access more difficult markets without taking so many risks.


You should be able to find markets that have forums, ezines, magazines,
books, courses, training events, conferences, seminars, get togethers, stores,
membership societies and so on to help with idea development, research, ideas, content and feedback.


Your niche might not have many or all of these but they are a good
indication that your target market can be accessed and more importantly that
information is available that can be tailored and focussed into specific
products and services that provide what the market needs.


A small tight niche is great but are there any
customers at all?


Finding a group of like minded customers who have great needs and wants AND
MONEY! is a fantastic game to win.

To be one of only a few suppliers with a
product or service that is right on the button for the needs of the market is
great but are there actually enough potential customers to make the
market viable?






Will you get a return on your
investment?


It’s all very well going niche but not if your product will never make a
profit or your sales volumes are too low compared to the time and money spent on site management.


You need to find small focussed markets where you can generate enough leads,
enough visitors and enough sales to make it all worthwhile..otherwise you
might as well sit and burn a wad of dollar bills!


Can your customers afford your
offer?


When considering a niche you need to bear in mind two key aspects around the
affordability of your offer.


First up – you need to avoid playing in a market where the potential
customers available to you simply can’t afford your offer – or don’t have credit
cards.


More importantly you need to strike a balance
between the cost of your product, the cost of alternatives or the cost of your
customer not getting an easy solution to their needs.


So if your product doesn’t have much direct competition and the problem it
solves is costly in terms of time, stress or money – you can afford to charge a
much higher price.

You also get a good sales USP – “invest $N dollars in product X and save yourself X hours or Y
dollars”

What is the future value?


When you develop your first niche idea and your first product it will pay you
very well to think about what your next and your next and your next will be.

You’re going to be spending a lot of time and effort developing your first
product and market so it makes a whole lot of sense to ensure that you can
develop your business into complementary markets or offer complementary products
to your customers.


By doing this you’ll ensure that your initial work can be used across more
than one market and more than one product meaning each becomes cheaper in terms
of resource and costs.


It’s the repeat business that will generate your biggest profits over time so
it pays to plan ahead for new offers to your existing customer base as soon as
possible.



So before you leap into action and get carried away with your product build, your logo and setting up your sales – just make sure that your niche gives you some good answers to the questions I’ve posed above. It’ll save you a lot of wasted time and help give you the confidence in your niche on days when the skies are looking gray if you have your answers written down.

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