Step 3: Find the right niche
A niche can be defined as a specialized segment of the market for a particular kind of product or service. When starting a business it is important to find the segment of the market that your skills or products will cater to so that you can focus on marketing towards that customer base. One of the easiest ways to waste your companies money is by marketing to someone who has no interest in your product. Mass marketing has been something businesses small and large have looked to in order to reach a wider audience for their products and services. With the amount of information that the large tech companies have stored on just about anyone with a mobile device, there is no longer a need to blindly market to people who wouldn't show any interest in your product or services. Knowing your niche will allow you to target those that would be most likely to want and need your services and products. If you can get 10 people out of every 100 that sees an ad to go to your site and purchase a product, you are starting off great.
How do you find the right niche? The reality is that the niche often finds you. I say this in the sense that as your business picks up you will start to understand what services or products are your money makers. Once you see that there is a particular thing that your customers or partners are more inclined to, then you start to adjust your approach so that product or service becomes the center piece of your offerings. You will now adjust your marketing strategy so that you are pulling more eyeballs across the internet towards that item. This will in turn produce much better returns on your marketing investments. The products that are not working will be phased out and before you know it you will be specializing on a particular product or segment. You have found that niche.
The reality is that in order to find which product sells best you will need to try a plethora of different products and see which one dominates. Some advisors believe that coming to market with a specific product set is the best way to go. I believe that often times we new entrepreneurs need to find our mold and therefore are served best putting out plenty trial balloons to find our direction.
Next article: Get your books in order asap
In the next article we will discuss the importance of making your finances a priority from the beginning and what you should do if you haven't done it yet.