How to Successfully Build a Niche Market Business

Have you ever heard the expression Jack of All Trades, Master of None? Simply put, this phrase means that a generalist is capable of doing an array of things decently, while a specialist has the ability to do one thing very well. The same sentiment holds true as you start a new business.

Launching a business in a field of competitors is not an easy task. It is especially difficult if you are attempting to build a successful business while vying for the same customers that all of your competitors are targeting.

With that said, are you wanting to approach your new business as a generalist or a specialist? If you learn how to focus on a niche markets target audience, you could easily reach for success as you work to establish credibility over the competing generalists in the field.

Below, we will go over what a niche market is, why a niche market is good for business, how to find a niche market, and how to create a niche market business.

What is a Niche Market?

According to Shopify, a niche market can be defined by its own unique needs, preferences, or identity that makes it different from the market at large. Knowing what your product or services niche market is will allow you to hyper-focus in on your target audience; creating products and services that will leave customers needing you.

Why is a Niche Market Good for Business?

When your business is looking to create brand loyalty among a sea of competitors that already have a strong following, it can be challenging to find the success that you are looking for. Choosing a niche market strategy can give you, as an entrepreneur, the ability to have the trial and error that is necessary for all new businesses, while offering fewer long-term consequences along the way. You see, when you have fewer competitors to work against, you have a higher chance of capturing your audience and thus building that loyal following that every company hopes to have.

One of the most significant aspects of creating a niche market business is that you have a captive audience at your fingertips. This unique audience knows that your product or service is useful and understands how your business can help to better their life. You are those able to focus all of your efforts on this specific market that allows your business to stand out from the larger brands.

How to find a niche market

In order to create a successful niche market business model, you must find your profitable niche market that has room for your product or service. To do this, we suggest analyzing the current marketplace so that you can note holes where needs can best be met. Once you are able to establish an overview of a broader market, finding a niche will help you define everything from the product features you aim at your markets’ needs to the price range, production quality, and positioning, and branding in the market.

We understand that finding your niche can be overwhelming, but we promise it will give your business the competitive edge you need from the start. Almost all markets can be further narrowed down in order to find an appropriate target audience for your product or service. Common ways we recommend narrowing down a target audience are:

  • Price – luxury, moderate, or discount
  • Demographics – gender, income, age, education level
  • Level of quality – top of the line, handmade, economical
  • Psychographics – values, interests, and attitudes
  • Geographics – residents of a particular country, city, or neighborhood

How to create a niche market business.

Finding your niche market is just the start, but these steps will help you create your niche market business.

  1. Start with Google Searches

The absolute best place to start brainstorming niche ideas is to understand what other organizations are doing and how they are selling their product or service to their target audience. As you search, remember your goal is to specialize in a product or service, not to generalize in it.

  1. Connect with others who have similar interests.

It’s never an easy task to start a business but having individuals in your corner who understand the market and could potentially team up with you in times of need is crucial as you create a niche market business.

The internet is an incredible tool to help find groups of individuals with shared interests and passions. Searching for either online groups of these individuals or local support is possible through the world wide web.

  1. Refine your business idea.

It is essential in this stage to identify your audience and the needs that the product should serve.

If your niche business does have competitors in its industry, we want to encourage you to make a list of those and how you can improve on their offerings. What we mean by that is what is your organization bringing to the table that is better than your competitors. Ask questions to find out how your product or service can be an improved or better version of theirs.

Spending this time vetting and sourcing other competitors is a lot of work, and we understand that. But, we promise that this is a step that will pay off in the long run.

  1. Know your target niche market inside and out.

So, you have a product or service and a niche market you intend to serve. DON’T STOP THERE. It is not enough to simply know the basics of your target market. You must have a deeper understanding of your target market in order to find success. In addition to this, you must know how your product or service can fill a need for this audience that is not currently being met by another company in your industry. Why is your business special? What makes your organization unique? How can you take care of your customers? Keep in mind, the smaller the market, the better you must know your customers.

  1. Personalize your approach.

At iStart, this step is one of our favorites. We highly recommend finding ways in which you can personalize your interactions with customers. Personalized service is crucial for niche businesses as you are already aware who your targeted audience is and can thus tailor your customer service to their expectations.

  1. Listen to your customers.

As you grow your business, we want you to make sure you listen to your customers because even the best-laid niche marketing plan is doomed to fail unless you are committed to talking to your customers and listening to what they have to say. Seek out feedback from them and rectify any mistakes you may have made immediately. This will help your business to continue to grow and remain relative in the process.

  1. Invest in PPC Advertising.

If you are offering a niche market product or service, paid search is virtually essential. Pay Per Click (PPC) advertising is perfect for niche marketing campaigns as keywords, the ability to optimize your campaigns and utilize extensions helps to make sure your message gets in front of the right people.

  1. Continue to watch your competitors.

For niche market businesses, it is important to know what you competitors are up to. There are numerous software tools, such as Adbeat or MixRank, that offer competitive intelligence to help you know what niche marketing strategies your competition is using.

When choosing to break into the niche-market business, keep your primary goals in mind, and make sure your message clearly tells your target audience what your business is all about.

If you have a great idea for a niche market company and are overwhelmed with where to begin, give us a call. At iStart, our business accelerator program focuses on developing a lean start-up business by defining all of the elements necessary to produce a minimum viable product for quick acceleration. We work with early stage start-ups to help guide then through the start-up roadblocks by personalized mentorships and our core curriculum.