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Things To Keep In Mind Before Finalizing Your Business Niche

Things To Keep In Mind Before Finalizing Your Business Niche
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You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Every Entrepreneur wishes to find the perfect niche for their business or start-up or private organization. It’s definitely not at all easy to choose what is right and relevant as per the market scenario and seek out what’s best for you. Good niches don't just fall into your lap covering but they are to be brainstormed.

The basic blunder first generation entrepreneurs make is that they claim they can do many things at a time. It's not shocking that so many companies have adopted this tactics. They put all their eggs in one basket; we all know how the result will arrive.

If you are successful in discovering the right niche then you can become your own boss and claim your status as an entrepreneur. It can make a huge difference in running a business that is successful from one that is a flop.

Smart Organizations need to stake out unique market, in layman language we call it ‘The Sweet Spots’, those areas that come across so strongly with target consumers that they are willing to pay a premium price.

It is evident that the more narrowly you can define your target market, the better it will be for your business to scale in future (revenue wise).

This categorization is nothing but creating a niche and believe me, it is one of the attributes that decides the fate of the biggest companies. Walmart and Tiffany are both retailers, but Walmart serves almost bargain-minded shoppers, while Tiffany attracts upscale jewelry consumers.

Do you want to create a good niche? Here are seven advises if followed and adapted right can take you grab the crown of the business market.

Think as if you are a customer?

That makes it pretty simple. If I want to set up a business of eCommerce, then I would absolutely have to conceive what the regional or targeted customers are thinking about, their choices, their budget, their expectations, etc. When you confront the world from customers’ perspective, you can distinguish their wants. The best way to do this is to talk to them and take into consideration their main concerns.

In simple words, you should learn to target carefully. Finding profitable new niches necessitates a set of skills different from those needed to build market share.

Passion. Passion. Passion

If you are passionate about your business, you will more likely to put all of your time and energy into it. The first step in coming up with the perfect niche is making a list of what you are passionate about. Find out what you love to do, in order to become a success in your niche. However, if you are doing something you don’t love, you’re not going to nurture and grow your business very well.

Make a wish list

Wish list of two things - Your selected niche and the ones with whom you want to do business with. Differentiate the geographic range and the types of businesses. If you don’t know whom you want to do business with, you can’t make contact. You must recognize that you can’t do business with everybody. That just confuses your customers.

Profitability of the Niche

Once you have a niche idea, the right niche idea, it’s time to ascertain how profitable it is. You should ensure that the time and money invested into it is worthy before deciding to market yourself as an expert in that assigned area. If the niche has little to no competition, there could be a reason for it. It is mandatory to know if the niche you have shortlisted is profitable as per the current market scenario or going to be moneymaking later.

Care or Don’t Care about Competitors

Make a list of all your competitors to get an idea of how competitive the industry is. Once this list has been made, determine what it is that sets you apart from the competition. If you have something that your customers won’t find with any other company, make sure they know it. It’s not about caring or not caring about the competitors; it’s all about letting your customers aware about what special strategies your business is convoluted with.

Ex: You start an eCommerce website that serves ‘1 Day delivery options’ to any product you buy. So, obviously, nobody else in the market has such features and this is how you stand out from the crowd.

More and More Market Research

Marketing research is done with every business in order to determine who the target demographic is. If I want to begin a small scale mobile application development company, then I would have to know who are ranking SEO wise, who are actually having presence globally, who are my real regional level competitors, and many factors that will tell me- it can be only known from the research. Before jumping into any business, you need to understand who you will be selling your products or services to, which is where marketing research comes in.

Evaluate and Test

Now it’s time to evaluate your proposed product or service. Once you have a match between niche and product, test-market it. “Give people an opportunity to buy your product or service—not just theoretically but actually putting it out there. The test shouldn’t cost you a lot of money.

These tips will help you come up with the perfect niche for your business.

Edition: December 2016

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