As mentioned in a previous blog post, spending quality time identifying the synergy between your professional skills and your personal interests and passions, is incredibly important to building a successful business in any niche. Your clients will be more likely to act on your information and advice, when they appreciate your passion and level of professional expertise on the subject. This kind of posture within a specific market or niche, gives your business and professional profile instant credibility. It also means that you get to focus your time and energy working on things that are most enjoyable to you.
This will come across in the way you communicate and connect with your prospective customers and clients, and will boost your chances of success. Conducting regular evaluations and reviews of your business is necessary so you can accurately determine whether that niche is profitable or not. Even if you feel really passionate about working within a particular niche, or working with specific types of people, there's probably no point, if that business can't provide you with the income you need to live the lifestyle you want.
The following points will help you identify whether the niche that you've chosen can be profitable:
1. What is the existing supply and demand for products and services in your chosen niche market? In most cases, some competition is usually a good sign that there's an active consumer market. If you see similar products and services being promoted, it's a good sign that there's a ready-made customer base looking to buy.
2. In terms of your marketing, will you be focusing your attention on a particular type of customer, or on a specific range of products? Businesses promoting to a specific target group or service niche, may have a relatively narrow pool of potential customers. While a business with a customer-based niche, doesn't necessarily focus on one particular product or service, instead providing solutions to certain specific target audiences.
3. What value can you add value to this market segment? Think about how your niche-specific personal interests, technical skills, an professional resources, can benefit your target customers. If you are entering the health and wellness marketplace, you will need to have an appealing value proposition, and be able to differentiate your products and services from other health and wellness professionals. Simply promoting yourself as a health and fitness professional, or a wellness coach is unlikely to attract people who don't know you.
4. Can you promote your solution in a way that has a fresh and unique feel? This would help you to stand out from everyone else, so you could be seen as the leader, or expert in your chosen niche market. This kind of solution is called a unique value proposition (UVP), and defines your product or service as being the best value solution for anyone in your niche target market. Originality combined with quality, and affordability gives you the opportunity to be the leader within your market.
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For those of you that are familiar with sales and marketing, you probably understand the benefits of narrowing down, and fine-tuning your business focus. But the question is, when should you stop 'niching down' and just start promoting? The opposite question is also a valid one. How do you know if you have identified, and fine-tuned your market enough? In order to answer these questions for yourself, you really need to know the difference between niche marketing, and micro-niche marketing.
The Health and Wellness industry, for example, would be considered a mass-market. This contains all products and services related to physical, mental, and emotional health and well-being. One specific niche-market, within the broader niche of health and wellness is diet and nutrition. This could include micro-niche topics like gluten-free, organic, whole food, Paleo, Mediterranean, and nutritional supplements among others.
Once you have worked out where your professional skills, collide with your passions, and what you really love doing, you will know which niche market to work in, and, exactly how much you may need to further specialize your business, into a micro-niche. For example, you may want to create a wellness company that delivers weight loss nutrition supplements and diet programs. This would be a niche company. However, If your professional skills and personal interests are more suited to a specific nutrition-related field like irritable bowel syndrome, then operating a micro-niche nutrition business is probably your best move.
The important thing to remember, is that there is no 'one-size-fits-all solution' when you are narrowing the focus of your business selection. Some entrepreneurs and business owners can be very happy, and successful, delivering niche solutions for their clients, while others will be more successful by niching their business down even further, so that they can provide very specific solutions, to a much smaller, and more clearly defined micro-niche customer base.
It's also business critical that you do your homework, before you decide to open a business that specializes in a really specific niche-market. The right type of market research will show you if there is enough customer demand, for your business to be profitable. Researching your potential customer base, and competitor market, can take time. However, if done well, it can be time well invested.
Remember, It will be much easier for you to pinpoint your niche market with a laser focus, if you spend the time getting clear about what you really love doing, and why your customers should be buying from you, and nobody else.
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