This step covers how to ensure the potential niches on your shortlist are the right choice for you and your business and not a disaster in the making based on mistakes such as:
- too much love
- being an inventor
- a niche that isn’t a niche
- customers who won’t behave right
- customers offline
- too big too small
- taking on major players
- careless talk costs business
Now that you’ve taken time to properly consider what the customers in your possible niches need it’s now time to prove your remaining niche ideas are not a disaster in the making.
Deciding on a niche doesn’t have to be hard. It’s just a matter of taking information that is available to you from different sources and putting it to good use.
Remember – it’s far better to start again with a new list of niche ideas than it is to pursue ideas that simply won’t work. My experience of product development has shown that if an idea is a turkey no amount of effort, time, money or special offers will ever make it fly. Far better to get a good idea with a realistic chance and spend time and effort on that.
To remove potential mistakes from your list you simply have to apply my mistake identification questions to your niche ideas list. If any fail to pass this test, scratch them off the list or do some serious thinking about how to refocus them to better suit your plans.
Do you love your potential niche?
The biggest danger of choosing your niche is simply going for one that you love, adore and as a result are blinded. Building a site as a hobby is fine but if you want to have a business you need to ensure that your passion matches what the market and your customers want.
Your customers are nearly always right as they have money to give you. You can always be right if you just want to spend your own money and give it to others. And that’s called a HOBBY not a BUSINESS.
So make sure your niche ideas has customers with needs before you choose the thing you like doing the most as your perfect niche.
So many new niche business owners are keen to invent something totally new, never seen before for a market that no one else is operating in. I know it sounds like nonsense, but pursuing a niche that has no competition is usually a very bad sign. A niche with no competition is usually a sign that it isn’t going to work.
But isn’t it possible that no one has thought of this niche yet? That maybe the market is ready for an invention that is truly unique? Well, of course. Anything is possible. It’s just extremely unlikely.
Even if you have created a brand new, original product idea like another iPhone or Segway, it will be hard, at least initially, to get the sales you want. After all, if it’s brand new and no one’s heard of it, they won’t be searching for it yet.
The most likely reason why there aren’t any competitors in a niche is that no one is willing to buy anything in it or someone else tried to dominate it once before and failed. People don’t stop their marketing efforts if they’re successful only because it didn’t work OR they ran out of money trying.
Is the niche a niche?
It’s vital to the success of your niche business that your niche is focused and highly targeted. People must be able to access your products with relative ease.
A surefire sign that your niche really isn’t a niche at all is that it’s undefined, obscure or difficult to find. Any of these qualities applied to a niche are highly damaging and point to one thing and one thing only: your niche isn’t a niche. It’s just a general topic, and nothing more.
Much of the time when your market is undefined or unreachable, the problem is that the niche market isn’t clear because the niche is too broad. Niches that are too broad and general would be things where there are just too many sub markets, product types or categories underneath.
So things like Diets, Golf, Cancer, Shoes, Computers and Pets would be examples of so called niches that are really just general themes. Dig deeper and be specific not generic.
Will your customers buy what you offer?
There’s more to a niche than just having a lot of people interested in your product. You need to ensure that the customers are actually willing to spend money on your product.
An ‘interest’ in your product or niche is no good at all. What you need is a niche that is large enough to sustain itself that contains interested customers with the ability to spend money and a definite intention to do so.
Remember, however good the niche market looks in terms of size, keywords, competition or potential customers it will do you no good if the customers involved in the niche want everything for free or simply don’t want to pay.
For example, trivia questions are very popular with over a quarter of a million searches every month in the US. There are 7 million sites listed on Google for trivia questions but this is a classic niche that never was.
Truth is there are so many sites offering free quiz ideas, free questions and free trivia software why would anyone want to pay you for the same information when it can be obtained for free?
You should also check that your potential niches are not targeting those with limited money. If your market is made up of teenagers, students, the unemployed or the retired you may find it difficult to achieve success if these very customers can’t actually afford your products.
Check first or you could end up going nowhere. So look at your list and check that you have niches that are suited to those with actual money to spend.
Do they buy online?
Despite some very sophisticated shopping stores and fancy personalized graphics there are still a lot of products that people will look at online but not buy. Very often customers in these markets will seem like a very good niche but unless you have an offline offer they will end up being just browsers and not buyers.
Do your niches have online customers or browsers who just visit online stores to check things out? Think about important items like Cots or a Wedding Dress. These are typical niches where customers are usually only buying the item once in their lives and the decision is tied up in a lot of emotion.
These customers will normally buy the end product offline after looking online as the purchase is tied into a lot of other senses such as the feel, quality, the look of an item and the involvement of a parent or partner.
Is the niche too big or too small?
You need to avoid making life difficult for your business and that means avoiding niches that are either too small or too big for you to succeed in.
A niche too small would be one like say ‘Labrador Diets’ that has so few searches a month (just 16 in the US and less than 50 worldwide) that you’d be lucky to sell much at all – even though Labradors are one of the most popular breeds of dog AND they are often overweight!
So no matter how you enter this market there’s no one really there to see you.
A small market usually only works if it is a very high priced specialist market. These are typically local niches for physical goods and services.
If this is your niche then a small market will work but it’s probably best to get experience in a more normal niche first where you are going to get the visitors and customers to refine your skills before specializing in a small, low traffic market.
On the other hand, if your potential niche it too big then you may be a player but your offer will just be lost and it will be hard, tiring and very expensive to get ahead against so much competition. For example, If you look at a market like ‘Florida Real Estate’ there are around half a million searches in the US a month. But there are fourteen million sites actively optimized for this market and 214 million general sites.
What you want to find is a niche that’s just right. Not too big, not too small and not too full of competition. As you work through the rest of the materials in this choosing section you will be shown EXACTLY how to identify such niche markets.
Is the niche dominated by major players?
There are a lot of niche markets that are big, full of competition and easy to enter. Trying to take on the world in these markets would take a lot of time, energy and most of all money.
You need to be careful that you are not trying to take on either a big established player or someone who has a unique feature or USP for their product.
Until you have a very successful business up and running it’s better in my experience to focus on a smaller more specialist market where you stand a much greater chance of success. One success leads to another and another and so on.
Have you given away your niche secrets?
Social Media is a viral tool where your message can end up in all sorts of places and be read by all sorts of people that you cannot control.
So when you’re deciding on your niche don’t post the choices on your blog or Facebook profile.
If you do air your choices to the world you may find that someone else gets there before you and all that hard work was a complete waste of time!
By all means be proud of your business when it is up and running and a great success but don’t tell the world when things should still be kept under wraps.
Or you can access the latest edition of the Dr Nitch Niche Marketing Guide – “Choosing Your Niche – 7 Simple Checks To Your Success”. This guide shares the step by step process for selecting niche market ideas that the Dr Nitch Niche Marketing Center has identified.