In Your Place How to tell if your start-up idea is based on a niche, a trend or just a fad that will fizzle

Starting a niche business--one focusing on a small, underservedpiece of a market--is often key to entrepreneurial success. But howdo you identify your niche? Here are some terms to understand:

• A niche market is awell-defined, enduring market segment with common characteristicsand specific needs; it is always present, but often overlooked andunderserved. Niches are consistent: They grow, and if they fade,they fade slowly. An example is snacks packaged for airlines.

• A fad market is created bypopularity that rises rapidly in a short time and fades, eitherquickly or slowly (think Pokemon). A fad market may disappear orremain in existence, but it declines in size to a small fraction ofits popularity apex.