It’s getting increasingly difficult for companies to stand out in today’s cluttered marketplace.
There are around 627,000 new organisations appearing in the world each year. That means that there’s a lot of competition out there — no matter what kind of industry you’re in.
The good news? You don’t have to blend into the background.
Rather than trying to keep your head above water in a growing ocean of similar companies, you can always narrow your focus and try appealing to a #NicheMarket instead.
With a specific niche, you differentiate yourself from other ventures in your industry, by concentrating on a sub-section of customers who aren’t getting the solutions that they need from existing enterprises.
Used correctly, a niche brand gives you access to more loyal customers, a stronger brand presence, and greater opportunities for sales. The only question is, how do you figure out which niches are profitable, and which are just passing trends?
3 ways to find out if a niche is profitable
Finding a #ProfitableNiche for your brand is easier said than done.
Just because you’ve come up with an idea that no other business has considered yet doesn’t mean that the concept you’ve chosen has the potential to make you and your team a fortune.
Fortunately, you can narrow down your business opportunities with a few simple steps.
Step 1: Find out what’s selling in your space
Start by looking at the products and services that get the most attention in your industry. Usually, you can do this by looking at the trending products section on Amazon, and similar marketplace sites. Notably, this won’t necessarily tell you what you should be selling, but it will give you a starting point.
For instance, if you notice that people are spending a lot of money on foundation in the beauty industry, and you’re interested in that space, ask yourself if there’s something you could do differently to make your product stand out. Maybe you could offer a foundation that’s similar to the top-selling brand, but offers different formulas for unique skin tones? Can you promise your audience that all of the ingredients that go into your product will be organic — therefore appealing to the environmentally-friendly customers on your list?
Step 2: Join the conversation
In today’s world of social media, almost every audience out there comes with its own #NicheCommunity. The good news for emerging brands is that this means you have plenty of opportunities to speak to and listen to your customers. On sites like Clickbank, you can find out what kind of words and phrases your audience is searching for, to determine whether there’s a general interest in your product, or the items you’ll be selling.
For instance, if you’re selling pizza for people with lactose intolerance, a strong search volume for “How to make dairy-free pizza” would be a good sign for your brand.
You can also use social media and forums like Quora to dive deeper into the problems that your customers are trying to solve. Ask your own questions to see if there are any competitors that you’ve missed nearby and join social media groups to see what kind of challenges your audience members struggle to overcome. This will give you an excellent insight into how you can begin to solve genuine problems with your #NicheBrand.
Step 3: Test your ideas
There’s only so much information that you can get by checking how popular a search term is on Google and listening to your audience on social media. Eventually, you’ll need to take a risk to determine once and for all whether your company is going to stand out for all the right reasons in your chosen industry.
One of the easiest ways to test the potential of your niche product is to set up a landing page and squeeze funnel for your product. You’ve probably seen people doing something similar with Kickstarter campaigns in the past. Even if you don’t end up with many pre-sales by building your landing page, you’ll be able to find out what your audience is interested in, and what they might not like about your idea.
Sometimes, all you’ll need to do to improve the potential of a profitable niche is change your tone of voice or make a few adjustments to your design. Other times, you’ll discover that your niche just doesn’t have as much potential as you thought. At that point, you’ll need to be willing to look into something new.
Find yourself a profitable niche
In some ways, launching a business today is easier than ever.
You have countless opportunities to listen to your audience and build products based on what they’re saying online. What’s more, as technology continues to evolve, running a company online is easier and more affordable today than it once was.
However, at the same time, the versatility of the online marketplace also means that you’ll have countless sources of competition to deal with. You’ll need to make sure you’re choosing the right niche before you begin to look into #MarketingIdeas and sales opportunities.
Take your time to figure out which industry you’re passionate about, and what you can bring to that market that no-one else can offer. If you’re successful in finding a profitable niche, there’s no limit to what you and your company can accomplish.