When you start a new business, the first thing you need to clarify is – what niche is the most appropriate for my business?
A niche is the industry or market you will specialize in. It will determine the types of products and services you will sell. Your goal is to focus on one specific market, rather than wasting your energies by trying to operate in multiple niches.
There is a common saying that if you are not casting a wide net with your marketing, you’re leaving money on the table. Rather, the opposite is the truth. It is less profitable and more expensive to sell your product to a wider audience. Selecting the right niche is an excellent way to avoid these issues and ensure that your business stand out.
Below are reasons WHY selecting the right niche for your business is important.
Selecting the right niche makes it for businesses to build their brand loyalty. This approach gives your business the opportunity to provide clients with their most needed and desirable product. You will end up having a greater competition because the products in your niche won’t be found easily in the general product.
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An important factor for selecting the right niche for your business is that it enables you to sell to a segmented market. It will help you take your products to the people who have interest in getting them. You will be able to redefine your business and lead your products and services in a direction.
When you select the right niche and you focus on it, you can learn about new products, ideas, and innovation about the market. It will be easier for you to find new opportunities for your business and sell the same customers different new products, increasing the customer life time value. You can focus on your existing client base, rather than constantly trying to chase new customers.
When you focus on one niche only, you can build yourself a solid reputation and become an expert. When people consider you as an expert, you will speed up the process of new website visitors coming to know and trust you. This is very important to turning leads into paying customers.
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Save marketing costs
Selecting the right niche will keep you from wasting money hoping for result. It will make it easier for you to save costs on marketing. You do not have to spend huge sum of money advertising to the general public. Instead, you will advertise to only your target audience that meets your niche’s requirement. With this approach, your business, products or services will reach a larger percentage of people who probably needs your services or buy your products.
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Your business tends to stand out when you have a unique product or service, and they get featured in media outlets such as radio stations, newspapers, or talk shows.
Getting your business to the right people is more important than getting it to a lot of people. Also, using these media outlets to get in front of a lot of people has its benefits. The more people know your business, the more it is recommended to people who fit your business niche.
Your interest is to find a sector in which you can be a big actor. If your business is generalized on many different subjects, you probably won’t earn anything important. However, if you select the right niche for your business, you can focus your efforts on it and stand out in your specific market.
Selecting the right niche: How?
When you start your business, selecting your niche must be the first step.
Take some minutes of your time to write down a list of possible ideas for your business. Let your imagination run, don’t be too rational at this stage. The goal is to find out what you like most.
Try to answer yourself these questions:
1. What are my interests in life? What are my passions?
2. What I buy more often on Internet?
3. Do I have any hobbies? Can I share my knowledge of them with other people?
4. What is my dream business?
5. What are my current skills?
What to do next?
Once your list is ready, pick the ideas you like most. You have to put a lot of efforts on your business, so it’s crucial that you pick only the topics that you are passionate about.
Now ask yourself: do these ideas have all a profit potential?
Start from a simple Google search. If you are planning to sell shoes, you could search for “shoes”, “red tennis shoes”, “shoes for women”, or “sports shoes videos”. You need to check all the sites, videos, blogs and other online businesses that will show up for that niche.
If many results are showing up, it means that there’s some competition. This is a good sign, because people are interested on your topic. If you don’t find many results for your research, it means that there probably aren’t many potential customers online.
The next step is to use the two tools I have suggested in my previous article, to find out for more specific details about your niche.
If you see above 15,000 searches per month for your main keyword, and over 20,000 total for the other related keywords, that’s usually a good sign. You have some chances to be in a good online business niche.