The 5-Step Process for Finding Your Business’s Ideal Niche
The 5-step process for finding your business’s ideal niche market
A niche market is a small subset of a larger market. It is not the “average consumer” and they are usually defined by their values, tastes, or interests.
This is an example of how you can define your market niche:
- Women aged 18 to 30 who love fashion
- Moms with kids under the age of five who want low-carb food on hand for when they have energy slumps
- Older citizens from November to May (snowbird) looking for winter rentals that allow pets
How do I find my business’ ideal target audience?
Finding your business’s “ideal” niches requires patience and careful thought before making any decisions.
Niche marketing is a by-product of specialization. If your bank or company offers a specific product or service, you are going to need a specific market of potential buyers for that. Take the example of Starbucks and how their niche is coffee drinkers who enjoy high-quality beans roasted in stores at a low price point.
The first step to finding your business’ ideal target audience is deciding what it wants its core values to be as a company and then honing them down even further by figuring out exactly which markets would best fit with those values! Selling to a niche market is a way to stand out from competitors. It help your brand, and it helps your brand establish positive recognition within the market. Your business can become an authority in your industry for that niche audience — ultimately attracting more customers to your product or service.
What are the benefits of a Niche Market and how does this attract potential customers?
Focusing on a small audience and customer segment will enable your business to stretch its team further and attract customers who closely align with your services. Your customers will find more responses and this will increase loyalty. Loyalty is key for your business expansion as you have a higher chance of them recommending your services to other potential customers.
In order for you to establish yourself as an authority in this market, there are steps that need to be taken – and here is how I break it down:
- Find the right niche market according to my business needs and goals
- Develop a marketing strategy around our new niche audience
- Understand what we want from the relationship with prospective clients/donors/believers by articulating our value proposition(s) that will resonate with their needs and desires
An ideal niche market is also a risk as a small business could go in the wrong direction. Worst you could go in a direction where the pain points you think needs to be answered are finishing in an unmet need! A viable niche can touch a broader market thanks to online business platforms.
We built with the InvestGlass client portal multiple solutions connecting the business to QuoTrading Screen, Datatrans, and Stripe and created a niche business in a few days. Attracting new customers and finding a niche is, therefore, less risky when you go digital. Sales will be automated and you can create a unique landing page in minutes with a solution like Wix.com.
With InvestGlass CRM you can create audiences and individualize messages to each client niche based on their service expectations. Therefore you can test a new niche and not only focus on the easy and most profitable niches. Email and SMS target the right market niche to increase your conversion rate.
As InvestGlass manages inventory and portfolio you can link your commercial actions to products or services you offer.
Our final thoughts on the 5-step process for finding your business’s ideal niche market?
- Reflect on your passions and interests
- Identify customers’ problems and needs with dialogues
- Market research the competition with Prequin, Pitchbook, Crunchbase
- Define your niche businesses and their profitability.
- Test your product with target customers or service fast to fail and adapt fast
Collect the data in a good CRM like InvestGlass to build your case on each niche market quickly.