No matter the kind of business you are in, focusing on your niche market is one of the best ways of growing your business. Before you can do anything else in your business planning process, the first step should be to determine your target market and why you think they would want to buy from you. You need to answer one question: What are you selling and to whom? Consider whether your target market is the best one for you and why you think that they would be ready to buy from you. There are various tips that can help you to start a niche business.
Consider what you have to offer
Other than just a product or a service, you need to consider what you are really selling. Perhaps you live in a town where there are several restaurants selling the same fundamental product-food. However, you will realize that one of them may be selling fast food, another one pizza in an Italian restaurant and yet another may be specializing in sea food. While all the restaurants sell meal, they have a target clientele that is interested in the benefits that each of them has to offer. Therefore, before starting any business, your first step should be to determine why you think anyone would like to buy from you. Consider the need that your business seeks to fulfill? What differentiators and benefits do you intend to bring to the table so that you can stand out from the crowd?
Have a strategy to help you focus
If you do not define your product or service, you can easily become a jack of all trade but a master of none. This will negatively impact your business. You may have come across a handyman giving fliers that says that he is an expert in everything from plumbing repairs, drywall installation and many others. While it is still possible for the handyman to get a job, he is likely to get many more jobs if he specialized in one trade. This will not only help him to fine tune his marketing messages but he will be able to make a reputation for himself. When you have a strategy, it will help you focus.
Find a niche
It is important to determine your niche and show your strength in the niche. For example, The Loud Laugh found a niche of people who want to have a laugh about funny text messages! This is critical to the success of your business. When you identify your niche, you will be able to attract customers who value your service. You will also be able to build on the niche and ensure the success of your business.
Find your target customers
This is one step that you cannot afford to get wrong. A common mistake that many businesses make is to try to focus on so many target markets. You should research and find out about your target market. Consider the critical needs of your target market and whether the needs are being met. Does
the market have seasonal purchasing trends that can affect your business? Consider the size of your target market and whether you can get data on the
annual purchase of the market. Calculate the market share that you think you can gain. You will also need to come up with a pricing structure, the gross margin levels and discounts that you can use in your plan. After determining your target market, you need to tailor your business message to the market.