How to find a niche market?

Small businesses can hardly afford to compete in the market with many buyers left for them to find a niche where smaller quantities can be replaced with higher profits. The market niche is a targeted segment of the market. When searching for a niche, follow these seven steps:

1. Make a list with whom you want to do business. Be as specific as possible when specifying the geographical location of niche type business customers. As long as you do not know with whom you want to do business and where to find customers, you can not establish contact. Trends go in the direction of minimizing niches - so, for example, target market "teenagers" too big, necessary to specify, for example, "Afro-Americans with family income up to 40 thousand dollars a year."

2. Focusing. When deciding what you sell, you should consider that you can not do it all and to all customers and that it is less often more. Your niche is not the same as the scope of operations. For example, the sale of used clothing is an area, while the niche selling used clothes for pregnant women. In focus follow your knowledge and experience. For example, if 10 years working in the consulting company and 10 years in a small, family business, it can be your ideal niche consultancy smaller, family-run businesses.

3. Meet the buyer. That'll get your target market to best meet, you first need to know exactly what he wants. And to figure this out, it is best to talk with potential customers. Invite a small group of potential customers and make them focus group.

4. Synthesis. Your niche market should gradually receive your form, both in geographical terms and in terms of a specific transaction. A good niche market has the following characteristics: it is consistent with your long-term vision; what you want to sell, someone wants to buy - therefore you have enough customers; is carefully planned; is unique; develops. Ask yourself if all this applies to your niche.

5. Evaluate. Product or service that you want to sell, evaluated according to the criteria listed in the previous step. If you find that you are on any question be answered in the negative, let go of the idea of ​​dealing with the product or service and find a new idea.

6. Testing. Your product or service Test. Offer potential customers a sample.

7. Action! Now is the time that your idea completely alive. For many companies, this is the most difficult phase, but if you deal with things planned, he fears.

When your business bloom, there is a risk to fall asleep on their laurels. Do not! Every six months you answer the following questions:

- Who are my target customers?
- Who are not my target customers?
- What did customers think about me?
- My niche constantly evolving?
- You can predict the life cycle of niches?
- Are buyers still offer what you want?
- To business addresses with a passion?

Answers to these questions will keep you awake and on guard.