In an industry where new businesses are starting at a rapid rate, it’s difficult to stand out from the crowd. When SMEs fall into the background, they inevitably fail. Not to scare you, but Forbes reckons that eight out of ten new businesses become another statistic within the first year.
Finding a niche, then, has never been as important. With a niche idea, it’s not only possible to stand out, but it’s likely the firm will become a market leader. After all, your business is the only one with the original idea, even if others do copy it further down the line.
The problem that stands between you and industry domination is geography. Where on earth is the company’s niche and how do you locate it? It’s a good question which you can find the answer to underneath. The following is how a small business develops a niche.
Write Down Your Interests
Making a list of interests and passions is essential for two reasons. Firstly, people who have an interest in an area are usually knowledgeable. As a result, it is much easier to find a gap which needs plugging. Business owners who don’t care about a sector aren’t going to understand the intricacies of the industry. Secondly, it makes it more likely that you will continue when you do find an original idea.
Locating a niche is one thing, but you have to stick with it to develop it into a viable business idea. The fact that it’s dull and uninteresting means there is a bigger chance of calling the whole thing off. People who are passionate tend to work and work hard because they are in love with the job.
Read Up
If you find a niche which is a sure-fire way to make money, the fact that it isn’t a passion won’t matter. After all, money is money. Still, it’s a savvy idea to find out more about the industry so that the problems above don’t raise their ugly heads. The only way to do this is to study and read books.
Okay, so you aren’t at college any longer and your days of revising are over. But, reading a book or a journal is an excellent way to get to grips with the sector. Plus, most people find they make a connection once they attempt to learn about a subject matter. You never know, the passion might arise if you force it to.
Think About The Problems
The great products all do one thing: fill a hole. Whether it’s a McDonald’s cheeseburger or a Nike shoe, there is demand because the consumer needs the product. This is an essential factor to keep in mind when a small business is looking to develop a niche. A product or service that doesn’t have a purpose isn’t going to last, even if it is unique.
To avoid this issue, you should think about the problems in the industry right now. Is the turnaround time too long? Do the current products/services not cover all the bases? Are the prices too high in this financial climate? Once you answer these questions, it much easier to develop an item which gives the customers what they want.
Study The Competition
Your dip into the industry thus far might return positive results. However, it isn’t a done deal, not until you understand your rivals. The key is to get to grips with the number of new startups. Unfortunately, it doesn’t matter whether the idea is original due to the scale of SMEs. Standing out from the crowd, even with a niche, is a difficult task when the market is full to bursting point. With this in mind, it’s essential to undertake thorough research on every firm which you believe is a potential rival.
The thing you need to be able to figure out is whether you can differentiate the business from the rest. If that isn’t possible, the idea won’t matter as the customers won’t flock to the firm. So, is there a digital marketing agency which can create a brand that wows? Will you be able to match the SEO efforts of the companies which already exist? If you answer yes, then an upset is a realistic possibility.
Consider The Niche’s Profit Margin
One thing the idea has to do is make money. Otherwise, the whole process is a waste of time and valuable resources which the business needs to survive. So, before anything goes live, you mustn’t assume that the idea will make money. Instead, it is vital that you look at the possibilities and consider the potential pitfalls. An excellent place to start is by browsing products in your category. Is there any which exist? If so, are they popular?
The answer you want to hear is yes, and this might surprise a lot of entrepreneurs. The reason is that it’s proof that the product or service has an audience. Business owners like to think that there isn’t a product on the market because no one has had the idea yet. In truth, it’s because they have had the thought but couldn’t make it work. Now you know it will work, it is a lot easier to assign profitability numbers.
Test It
There is no way to be sure about an idea until it goes thorough testing. Even then there is no way to predict whether it will be a hit or not. Still, testing an idea will raise issues which you missed or didn’t know existed. Then, with the right tweaking, the business can put it back out to the public in its best form. Also, there’s the fact that the process allows you to pick the brains of your customer base.
As they are the people who are going to buy it, it’s only logical they have their input. Thanks to modern tech, testing is a simple process. All you have to do is set up a page on your website with details of the launch. By landing consumers on the page, you can gauge the pre-sale figures.
Once you have your niche, don’t let it go. In this day and age, an original idea is a goldmine.