You dream of running your own business and being your own boss. Finding your niche can mean the difference between running a successful business and a flop. But narrowing down your niche – and succeeding with it – can be a challenge.
Evaluate Your Skills and Passion
The first step is to identify your passions and skills. What would make you excited to get up and go to work every day? What do you love to do? If you have a passion for what you’re doing, you will be more likely to put your time and energy into it. You’ll also be more likely to ensure that your business succeeds.
Use your passions and skills to your advantage.
Determine if There’s a Market
Is there a market for your products or services? Is there a need that you can fulfill? You may be passionate about something, but there may not be demand for the products and services you want to offer.
On the other hand, your passion may lead you to an untapped market that could potentially be a lucrative one.
For example, maybe you want to sell nurse scrubs. Instead of catering to the saturated market of female scrubs, you could focus on male scrubs. With an increasing number of male nurses, there’s a growing demand for male scrubs.
Check the Competition
In virtually every market, even one that appears to be unfulfilled, there is competition. And competition isn’t necessarily a bad thing. If there are other players in the market, that must mean there is demand and need for your products or services.
Still, it is important to ensure that you do a thorough analysis of competing sites.
Get to know the competition. Look at what they’re doing and figure out ways to do it better. Maybe you can narrow your niche down even further to cater to an as-of-yet untapped market.
Ask, “What’s Missing?”
Ask yourself what’s missing in the niche? Put yourself in the shoes of an observer. What can be changed to improve your products or services to better serve your market?
Innovation will help you succeed with your business.
Find ways to improve on what the competition is doing, and turn to your target market for suggestions on how to better improve your offerings.
Test Your Idea
Once you’ve narrowed down your idea and determined that there’s a market, it’s time to test your idea.
If you’re running an online business, one way to test your idea is to set up a landing page for the pre-sales of a product that you’re creating. You can then drive traffic to this page through paid advertising to see how well it performs.
Don’t get discouraged if you don’t get any pre-sales. It doesn’t necessarily mean that your niche isn’t viable. You may just need to test different layouts, colors and sales copies to find one that performs well.
Finding a niche isn’t as easy as picking a dot on the map. You need to be calculating and smart with your decision to ensure that your business will succeed.