All about choosing the right niche. Choosing a niche for a business - how to do it and not make a mistake? Deep analysis is the key to success
Choosing a niche for a business is an unexpected problem both for a new entrepreneur and for people who are already doing business. Choosing a business niche directly affects success. If you have taken (are already going) the wrong path, then get ready to constantly overcome difficulties that will appear on the way again and again.
Therefore, approach the choice of a niche consciously: analyze, compare and understand the profitability. It's better than banging your head against the wall and trying to sell a product that no one needs.
Choosing a niche for business - misconceptions and myths
People create barriers for themselves in business. They come up with new products, want to be unique and try to cheat the system.
Some people succeed. But 99% of entrepreneurs with an “innovative” product quickly go out of business.
Less competition - more money!
A common misconception is that you should choose a niche where there is less competition. This is a fundamentally wrong approach. Just a high level of competition indicates that money is flowing in this direction.
Use logical thinking. Would hundreds of people bother with a business that doesn't make money? Obviously not.
This leads to the following misconception - the clients have already been taken away. This is not true. There are always clients.
Select a target audience from billions of people and work for it. The problem is not the number of clients, but the right offer and a well-developed product.
The business idea must be unique
Choosing a niche for a business depends on the uniqueness of the idea - absurd! Quality of service, in-demand product, quick response to market changes, well-structured marketing - these are the basics that will help in developing your business and making money.
Of course it's great if the idea is new. The catch is that it’s harder to promote new things. You essentially have to form a market and instill a culture of product consumption. This requires a lot of money. This point is worth considering.
Clients contacted our agency with new ideas and... 50,000 rubles for promotion. We refused them. Since the amount is small and people simply do not request such a product on the Internet.
If you have new idea, which has been tested on other people, then it’s worth entering the market through the media, plus promotion budgets for at least 1 year in advance. Or find an investor who will make financial investments into the business for a share of the company.
I like the idea, so do others too
It’s great when a person is passionate about an idea and in love with a product. However, here lies the catch. A person believes in his product so much that he forgets about:
- real demand;
- margins and deal cycle;
- calculating the break-even point;
- taking into account market trends and analysis;
- payback period for investments in the project;
- analysis of competitors and target audience.
As a result, choosing the wrong niche for a business can lead to problems and cash gaps. The scary thing is that the entrepreneur blames himself for the lack of “entrepreneurial spirit”, for not being smart enough, etc.
Stress, despondency, business closure and... leaving for hired work begin. Although the only thing that had to be done was to calmly analyze the niche.
Make a list of at least 100 niches that you like and analyze each of them according to the following criteria:
- demand;
- marginality;
- deal cycle;
- complexity;
- volume of investments for launch and payback period;
- market trend;
- the presence of successful businessmen who earn millions in this niche; how much, on a scale of 10, do you like the niche you are analyzing.
Pavel Ugryumov
Choosing a niche for business: obvious and non-obvious niches
Niches are divided into obvious and non-obvious. The former are attractive because they are a final and simple product.
The second ones are complex ones, which participate in the process of producing obvious ones. You can choose either type. Each has advantages and disadvantages.
Obvious niches
Obvious niches are business on the surrounding things that we see. Look around: furniture, cars, real estate, books and so on. These are final products that are in mass demand.
Advantages:
- easy to understand and quickly understand the niche;
- formed market;
- easy to analyze;
- a lot of requests.
Flaws:
- there is a lot of competition, therefore a high barrier to entry into the market;
- it is difficult to stand out among competitors;
- high risks.
Non-obvious niches
Highly specialized areas of business that are involved in the process of creating the final product. These are components for equipment, chemical reagents, etc. That is, in ordinary life such products are not found.
It’s worth building a business in a non-obvious niche only if you are a master in this area. For example, you have higher education biologist, worked in a relevant industry enterprise, and then decided to open a business on this topic.
Another example is the services of a forester who provides services for allocating zones for deforestation in accordance with the legislation of the Russian Federation.
Working for hire, a person received 70,000 rubles a month. Resigns because wages do not lift, but at the same time remains the best professional.
Opens a business and works with a former employer on a contract basis. In this case, the check is no longer calculated in thousands of rubles, but in millions.
Only a person who has reached the “master” level can advance and earn money in highly specialized niches.
If you try to become only an organizer, you will encounter staff turnover and will not be able to fully control the process of providing services.
Advantages of unobvious niches:
- much less competition, while the demand for services is quite high;
- low entry threshold;
- minimal risks;
- possibility of independent pricing.
Flaws:
- You must be a specialist who has extensive experience;
- you need to analyze the demand for a highly specialized niche very well;
- At the beginning of your journey, it is quite difficult to earn money quickly and a lot.
You learned that there are obvious and unobvious niches, and got acquainted with their features. Which one should you choose? It's up to you to decide. The main thing is to take into account the recommendations and do a niche analysis before investing money, time and effort in your chosen direction.
Choosing a niche for business: trending directions
They decided to put this type out separately. Trending niches are similar to the obvious ones, but have a number of features. Here, the analysis of demand for the product plays a major role.
For example, goods from China are ideal products to sell, but only at a time when the demand trend for them is at its peak.
This type of niche needs to be entered immediately and done quickly. The goal is not to build a stable business, but to hit the jackpot and move into another trending niche.
Let's take GPS watches for example. At one time, they could earn millions of rubles in a short period of time.
Now the demand trend is steadily falling and if you want to enter this business, in 90% of cases you will lose money or reach the break-even point.
But the trend for electric bicycles and scooters is growing (2018). You can easily enter this niche. The main obstacle will only be finding a reliable supplier who will not let you down.
Advantages:
- the opportunity to earn quickly and a lot;
- no deep knowledge of marketing required;
- high demand at the peak of the trend.
Flaws:
- business is not forever - as soon as the trend starts to fall, you should leave this direction;
- risks - the supplier let you down, you didn’t manage to sell quickly, demand fell and you’re in trouble;
- the matter is not suitable “for the soul” - main task buy quickly, sell quickly and get a margin;
- you need to closely monitor trends, the slightest mistake and you are in the red.
Choosing a niche in business - algorithm and analysis tools
Choosing a niche for a business should begin with an analysis of demand (this does not apply to unique ideas). In the USSR, the model of supply superiority over demand worked. In simple terms- “take what they give.”
If you have studied modern economy, then you know that demand creates supply, and not vice versa! Trying to impose a product on the market is a path to bankruptcy.
1. Demand analysis
Demand is easy to analyze. To do this, you need to go to Yandex.Wordstat and enter the query you are interested in within the time limit.
To find out the demand for a purchase, add the word “buy” to the request. For example, “buy an electric scooter.” Don't forget to select the region in which you plan to sell goods or services.
Find out how to analyze demand in practice from the video in which our director Pavel Ugryumov will review the Yandex.Wordstat service.
2. Competitor analysis
Choosing a niche in business is impossible without analyzing competitors. Find out which players are present on the market, how much they earn, what promotion methods they use and what size budgets are allocated for promotion.
Imagine this situation: you decided to repeat the success of one project, but did not analyze a competitor who receives hundreds of thousands of dollars of investment from America for promotion.
And you have 50,000 rubles for launch. What will happen? With 100% probability you will fail, as you will not be able to even be at the level of your opponent.
If you analyze your competitors, you will understand whether it is possible to enter the market and whether it is worth doing.
Evaluate your competitors using the following algorithm:
- product line - what they sell;
- determine the best-selling product;
- unique properties of the product;
- determine the marketing strategy - what promotion/customer attraction tools are used;
- find out touch points with the audience;
- calculate the effectiveness of advertising channels;
- check your competitors’ sales algorithm (yes, yes, we leave requests, call, buy);
- determine sales channels;
- check the chain of work with the client;
- find out the availability of sales scripts;
- determine the average bill, number of applications, sales and market coverage among the analyzed competitors.
Result of competitor analysis
Based on the data received, you will understand what the state of affairs is on the market and whether you can take a piece of the pie. Also, based on your competitor analysis, conduct a SWOT analysis, which will help you differentiate yourself from your competitors.
If you don’t want to bother and waste time analyzing competitors, then delegate this process to our agency. Just click the button below and submit your request:
Choosing a niche for a business depends on the target audience. Knowing your target audience will help you understand whether you can satisfy customer needs at the same level or better than your competitors.
Also, knowing and understanding customers will greatly simplify business promotion and development in the future. The target audience is the foundation of the project. Understanding the pains, fears, desires and needs of the audience will ensure a flow of clients.
If you want to learn more about the target audience, we recommend that you familiarize yourself with the course: "". To find out more, just click on the button below:
*Remember! Anyone who knows the target audience has no problems in sales!
4. Assess margins and deal cycle
The choice of a niche for a business is influenced by the product margin and the transaction cycle. These two factors are closely interrelated.
Product margin is the difference between the selling price and the cost price of the product. In simple terms - net profit from sales.
See how profitable the margin is in the chosen niche. The higher the net profit, the better. But there are nuances with the transaction cycle.
The transaction cycle is the time that passes from the moment of contact with the client until the receipt of income. As a rule, the higher the margin, the longer the cycle and vice versa.
For example, at grocery store The transaction cycle is 60 seconds, but the margin is quite low. Another example is real estate. Here the margin is much higher, but the transaction time takes weeks or months.
Determine the margin-to-cycle ratio and choose the option that best suits you.
5. Determine what your soul is about.
After analyzing the niche using dry statistical data, you will get a dozen directions. When choosing, we advise you to focus on knowledge and love for the niche. If you start doing something that is profitable but not your favorite, then nothing productive will come of it.
Love business, love clients! Well, we wish you success, high checks and a lot of positive emotions!
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During the planning stage entrepreneurial activity It is important to choose the right path.
The concept of a business niche - the basics of successful management
Literally, a niche is a recess in the wall. Globally – a zone of convenience. In the economy there is a free place where an entrepreneur can realize his idea.
The task of a novice businessman is to choose one in order to find clients.
Niche requirements
- Arouse interest among those who cannot find the service in the required volume on the market.
- Demand
- To be free is to target a specific target audience that has an unmet need for your product.
These criteria guarantee the profitability of the business.
When a person wants to start a business, he looks for ideas to implement, focusing on what surrounds him. The first plans are associated with current activities:
- trade in products and things;
- restaurants, cafes;
- shoe repair, tailoring;
- pharmacy.
It’s easy to find your way around – follow the standard selection algorithm: narrow your search to the minimum. Example:
- Segment (confectionery).
- Category (cakes).
- Niche (wedding).
The narrowing should be maximum, then things will go more efficiently. Amaze the newlyweds with sweet figurines of the bride and groom for decoration.
In which area is it better to open a business?
Those who have achieved success remember how they started from scratch, looked for options and ideas, and rejoiced at the first money they earned. In many ways, their professional growth was successful thanks to a correct understanding of business processes: some were based on intuition, others on experience.
Determine for yourself five areas of possible activity according to the algorithm for choosing a particular niche. Check the idea for viability. At this stage you will have to work hard.
Market research
Look at the chosen direction from the buyer’s side - are you ready to spend money on this idea? Talk to your friends and relatives - make a list of their priority needs. Find out your opinion about the importance of your chosen method of earning money.
Demand and competition analysis
Enter the name of the service in the search bar of your browser - you will understand the approximate number of companies that are engaged in a similar business, and estimate the circle of potential buyers. It is useful to get acquainted with analytical data on a certain type of business, which is published by many authoritative economic publications.
Practice
Test your idea on a test group. It can include family and friends. If you want an unbiased assessment, offer the product to a dozen random passers-by or inquire about possible cooperation with companies that, in your opinion, may become clients.
Do not despair if, after carefully developing your business idea, you have to look for other unoccupied market segments. An in-depth analysis of your own creative potential will help with this.
How to determine which business niches are not occupied
According to statistics, the following are considered promising vectors of entrepreneurship for Russians:
- Scope of services: accounting, legal, repair.
Let’s not idealize and talk about ideas that suddenly came in a dream: and now you woke up like this and ran to implement what you saw. It happens. But these are rather exceptions to the rule. Business starts with your personal choice. You decide to open your own business and clearly understand what you want to get in the end. Then it’s a matter of technology and knowledge. But the very first step is that very choice. What exactly do I want to do?
If we take the field of online sales, then the very first question you should ask yourself is what do I want to sell? The niche of your future business is your foundation, the basis for all subsequent actions. And if you lay a weak and shabby foundation, you will most likely be disappointed and suffer losses after a while.
I have seen many examples of successful niche selection, for example, the Taxovichkof company, which began offering nanny drivers with child seats in each car, or Airbnb, which created a site for safe rental housing, and vice versa, when people were in a hurry, they rushed into the pool, invested millions and ended up with nothing. So McDonalds tried several times to launch the line healthy food and even created a service for VIPs, however, they failed miserably: customers love the restaurant precisely for its democracy and accessibility.
A sober analysis of what you want to do in the future is the first thing that should worry you, and not a beautiful website or booklets. So, before you start realizing yourself in a new niche, evaluate how well your choice meets the following criteria:
1. You must solve people's problems with your product.
What do people pay money for? For pleasure and the opportunity to solve their pain. If you have trouble seeing, you look for glasses. If you're hot, you look for a water or ice cream stall. And so on.
Look around and think about what problems you have that are still not so easy to deal with.
In my practice there was interesting story: Once I was stuck in a traffic jam in the summer, it was +30 degrees outside, the heat was terrible. Young guys knock on my window and offer me magazines. What can I say, at that moment I would have given anything for a bottle of water and a Snickers, my body was so exhausted. And I looked around and saw the same unhappy faces in the neighboring cars.
What we did: hired guys who, in the daily traffic jam, offered drivers not magazines of dubious content, but water and snacks. The cost is minimal, we recovered the costs in the first few days of work.
What makes this event successful? The fact is that we didn’t try to sell people what we thought they needed. We offered what they need most now. And this example can be transferred to any niche. Look around, think about what worries people today, what they would like to change and improve.
Among the famous new products of last year, we can highlight an application that broke the figure of 10 million downloads in the first week alone. And why all? People are tired of standard photo processing filters in . They were provided with an application that allowed them to process their photos in style famous artist. As simple as possible and to the point. The creators felt the pain and created a product for it. This is the secret of any startup.
2. Your product must provide value.
Don't try to make light of the significance and importance of what you do. Assess the situation realistically.
Is your buyer willing to pay an amount for what you are offering him? If I’m offered water in a traffic jam, I’m ready to buy it for a reasonable 50–100 rubles, but if I’m offered the same product for 500 rubles, I’ll endure it until the next gas station.
The same thing with branded clothing - if you are trying to sell branded items in a small city, but at the prices of a Moscow department store - do not be surprised that your customers will refuse such an expensive purchase and go to the same aliexpress, where they can buy a copy ten times cheaper. The quality will be lower, yes, but for this audience the price is the decisive factor.
Be sure to analyze whether your customer is willing to pay for your product, no matter how good it is.
Here I can’t help but give an example at the beginning of the journey:
Attempts to create a computer for the whole family that cost several thousand dollars failed miserably and cost Jobs his job. Only years later the entrepreneur was able to return to the company and still complete his project, significantly reducing the cost of the final product.
If you want to create a consumer product, analyze how much your customer is willing to pay for it. Precisely ready, but not supposed to. Don't build sandcastles about people flying your product off store shelves. In an age of very fierce competition, your chance is one in a million.
3. Fast transaction cycle: make profit immediately
Now we are talking about small businesses and opportunities for beginners and not only entrepreneurs to start their own business here and now. Therefore, the strategy should be as short-term as possible.
If you see that your product is selling quickly, you can lower your markup to increase conversion. If you require promotion and, accordingly, financial and time costs, the price must increase. However, do not try to make money, act honestly and openly.
For example, a successful startup once did not spend money on a vehicle fleet and hiring employees. Basically, the company consisted of several people. They created an application where everyone could make money from taxi services. You register, take an order, get paid. Everything is as simple and fast as possible. Today, Uber is a global giant and an example of the most successful taxi company in history. recent years. And all thanks to a successful combination - low price and convenient service.
The consumer always reacts very sharply to two things: an artificially high price (“they want to make money on me”) and too low a cost (“poor quality product”).
4. Sell emotions, not products.
Remember that people want bread and circuses. Don't try to present your product too rationally, especially if it concerns the entertainment sector. For example, Party-bus, popular in the last few years.
People were offered a replacement for big clubs, the opportunity to relax with friends in close company, but with all the club surroundings, and even take a ride around the city. In total, a comprehensive interactive for any occasion: wedding, birthday, bachelorette party. And when we think about these buses, the most vivid images arise in our heads: celebration, fun, smiles and other pleasant things.
Let's summarize. How to choose your business niche:
- Think creatively and start with yourself: what excites you, what would you like to improve in the world around you?
- Next, look around, are there many people around who are facing the same problem?
- Are they ready to pay?
- And then try to evoke emotions and give the consumer not only a physical product, but also a memory.
Many specialists dream of moving from hired labor to their own business - opening their own business. Thankfully modern technologies allow almost anyone to provide services or sell goods both offline and on the Internet. The question arises of choosing a niche for business.
What does the majority do first? - Looking for business ideas on the Internet.
This is a failed strategy. If you view starting your own business as a means of escaping reality (let’s say the country is in difficult economic situation, or your specialty is not in demand in the labor market), your idea may fail.
When opening a business, it is important to develop in yourself 3 key qualities of an entrepreneur:
I. Be prepared to take risks.
An entrepreneur is, first of all, “a person operating under risk conditions.” All categories of the self-employed population, who can be called entrepreneurs: traders, farmers, artisans, are at risk in one way or another. They buy at a known price and sell at an unknown price in advance.
This is one of the first concepts of the concept of “entrepreneur” by the English economist Richard Cantillon.
Yes, this is a profession!
Just like the profession of a doctor, artist or engineer, it should be taken very seriously.
II. Be persistent. Perseverance makes you move forward despite setbacks. We wrote about 5 ways to persevere.
III. Be technologically advanced.
So, let's move on to the technology of choosing a niche.
Niche selection technology
Don't start with someone else's business idea.
And don’t start with your business idea, even if it seems brilliant and terribly promising to you.
Look at business through the eyes of the market.
After all, an entrepreneur is a profession aimed at satisfying the needs of clients and at the same time generating profit for oneself.
That's why key condition for success in building a business there will be choosing the right niche.
A niche for a business is a foundation, the reliability of which will support the entire further existence and development of the business.
What is a niche in business?
A niche is the difficulties, problems (“pains”) of potential clients that you, as an entrepreneur, need to solve.
When you open new business, first of all, it is important to carefully assess the market, its capacity, competitive environment and composition (conjuncture) - who sells what, how and for how much.
Often the arrogance of many entrepreneurs is expressed in the fact that they choose a niche, relying only on their own opinion and understanding of the market. Without any research.
But. If you do not conduct primary market analytics, then you are completely unprotected from risks.
As a result, after some time you will realize that the niche is not in demand.
Ask yourself and your companions 5 basic questions:
1. What do I like and what do I want to do?
You need to love your business, because over time: problems, difficulties or banal instability can get boring, and without love for your business, the business will collapse.
2. Will this business be interesting to me in 2-3 years?
A business needs to be built in the long term, unless it is initially intended as a one-time project. Understanding the long-term nature of your endeavors will give you strength for development.
3. Is my customer motivated by pain, urgency, or strong emotion to buy my product or service?
If in this niche you see a real, urgent need among clients who are only “sleeping and thinking” how to solve this issue, then this is your niche.
4. Are customers looking for solutions?
Do potential clients have the desire to find a solution to their problem?
5. How many solution options does the market offer them? What are your competitors offering? How well do their proposals meet the client's requirements?
All beginning businessmen usually face the same problems and mistakes.
6 main mistakes when choosing a niche:
1. Selected too “wide” niche - a large number of more professional competitors, competitors with an established brand, demand is almost equal to supply.
2. Selected too “narrow” niche - too few people are looking for solutions to this problem.
3. The project is launched without testing— when the decision is made for the client, without testing the product for demand.
4. A product has been selected that no one needs— look “soberly” at what you want to sell.
6. Positioning not from the “pain” of clients, and starting from the product, and - this approach is found all the time.
Now let's check how much your idea of your niche is confirmed by the consumer mass.
Monitoring consumer opinion
Go to forums, polls, conduct live interviews in social networks or among friends.
You must understand:
1. Is your offer interesting to the segment you are targeting;
2. What will be the main reason for contacting you (why clients will choose you);
3. What disadvantages do people point out to your idea?
It is also recommended to analyze key queries on http://wordstat.yandex.ru and calculate how many people actually turn to search engines with a query relevant to your offer. There, in the “Queries similar to...” block, you can find a useful hint for yourself.
For example, in the screenshot the output for the request “training courses”:
From the above example, we can conclude that people are actively interested in the subject of education, and we can assume that they are willing to pay for it. On at the moment On average, this market in Ukraine is estimated at $500 million per year.
Once you decide on a niche, think about how to convey your unique selling proposition to consumers.
State your position
Your message should be clear, unambiguous and short. The simpler it is, the more likely it is that consumers will understand it correctly.
You just did a small, but very an important investment for your future business, - the time you spent reading this article will help you find the most interesting and in-demand area for business. And its development will bring you not only great pleasure, but also decent profit.
Save this mind map so you can return to it whenever necessary!
This article is devoted to the issue of correct positioning of a business in a competitive environment. Why do you need to choose a niche? How to do this, what advantages this approach provides, you will learn from the article. We offer you a practical case on choosing your own niche.
What is a niche in business and why is it needed?
Surely you have repeatedly seen the following picture: there are two almost equivalent companies operating on the market, both well-known, successful, strong. But despite all the similarities, they coexist peacefully, and there is practically no competition between them. Why? The answer lies in making the right choice niches for every organization. Here are a few examples for clarity:
- on Russian market the Rastishka (Danone company) and Tema (Unimilk) trademarks coexist peacefully: the first has chosen the niche of healthy fermented milk nutrition with vitamin supplements, the second is positioned as a product for everyday use in the children's diet;
- Well-known world clothing brands of the Inditex company - Zara and Bershka do not compete with each other, since they are aimed at different audiences: Zara is intended for a more static image and age from 25 years, Bershka - A purely youth brand, where almost all things are avant-garde and bright. Naturally, both brands have clothing lines for adjacent segments.
When a new business opens, the first thing an entrepreneur does is to carefully evaluate the market, it, and the composition of the market (conjuncture) - who sells what, how and for how much.
For example, a jewelry maker opens his own workshop to repair items. There are many such workshops in the city, and they are all of a wide profile (i.e. they can work on any product). Then the entrepreneur decides to strengthen his ability to compete by choosing a narrow niche (in marketing this is called positioning) and designate his services as “Jewelry workshop for the repair and maintenance of diamond products.”
What does this give to an entrepreneur? Firstly, a clear position and designation of specialization, and secondly, a solvent audience. The owners of diamond jewelry are not poor people, and they are more willing to entrust their jewelry to someone who clearly specializes in such work. This means that a jeweler can set the price level for his services quite high and work with a narrow but profitable segment.
So, a niche is something that is unoccupied or not completely busy place in the market, which allows the entrepreneur to demonstrate his advantages over competitors. attract more customers and do your job as well as possible.
Step 1. Analyze free and occupied niches
In order to determine what is already on the market and what is not, read our article “Competitor Analysis in 10 Steps: Practical Instructions.” When analyzing existing offers, pay attention to how competitors position themselves and what advertising messages they choose:
Step 2. Analyze our own skills and preferences
In the process of niching, it is important to understand what you can do well, what is more interesting for you to work with, and how you are ready to build your business. If an athlete-bodybuilder opens his own gym, where he will train those who wish, this will be logical and more in demand among clients than the same service from a clerk.
The scheme for determining your capabilities is as follows:
We are talking not only about your personal abilities, but also, in general, about the real situation, the availability of suppliers, capital, potential. For example, you like the restaurant business, you know a lot about organizing such a business, but you don’t have the money to open your own restaurant, but you have contact with an excellent manufacturer of high-quality restaurant tableware. Occupy a niche as a company that supplies high-quality tableware to expensive restaurants. All your knowledge and skills will come in handy here, as well as access to a tableware manufacturer - this way you will make your personal interests profitable.
Step 3. Finding your niche
When you have information about what is on the market and understand what exactly you yourself can do well, it’s time to decide on niches. The most common types of simple niches in busy segments are:
- specialization in legal or individuals(for example, Internet providers “Business IT” and “Home Telecom”);
- gender division of the product (“Maxim” is a magazine for men, “LQ” is the first matte magazine for women);
- price division (Economy grocery store and Gourmet delicacy grocery store);
- age ranking (vitamins “KinderBioVital” and “SilverVit”).
There is also a complex niche when there are 2-4 elements, for example, by gender, age and price (status division can also be added): BGN - high fashion for confident young women.
When choosing a niche, you need to be clear about who it is aimed at and how it differs from those offers that are already on the market.
Returning to the example of opening a jewelry workshop, we can offer the following types of narrow positioning:
- an economical workshop for the repair of precious items - a niche aimed at people who do not have much income and value their jewelry. In this case, there will be a lot of work and for the profitability of the business, orders must be a constant flow. The requirement for an entrepreneur is speed of work;
- the already announced workshop for the repair and maintenance of diamond products - targeting an audience with high incomes. In this concept there will not be many customers, but each order will be paid quite highly. Requirements: utmost quality and responsibility;
- urgent jewelry repair and engraving - this niche will attract those who purchase jewelry as a gift and those who want to quickly fix a broken item. Here the cost of work may be higher than the market average (surcharge for urgency). The requirement is care and quality;
- a workshop-atelier offering the modification of old products and their alteration - targeting creative people who want to receive original jewelry at a low price. The cost of work is medium to high. Requirements: creativity. creativity, boldness of ideas, experience.
At this stage, you can choose 2-3 niches that are close to you.
Step 4. Check viability and demand
Now let's check. to what extent your choice and your idea of your niche is confirmed by the consumer mass. This can be done by monitoring consumer opinions (forums, surveys, direct interviews on social networks or among friends).
You must understand:
- Is your offer interesting to the segment you are targeting?
- What will be the main reason for contacting you (why clients will choose you);
- What flaws do people point out to your idea?
You can also analyze key queries on http://wordstat.yandex.ru and calculate how many people actually turn to search engines with highly specialized queries. There, in the block “What else were people looking for when they searched for “your query””, you can find a hint for yourself:
Step 5. Develop an advertising message and clear visualization
Once you have decided on a niche, you need to figure out how to convey your unique selling proposition to consumers and define your position. This is done with the help of an advertising message. To get acquainted with the topic. How global brands position themselves, you can visit the slogan database and use examples to evaluate the principle: tell the client why you are better than others.
By clearly visualizing the niches for our jewelry workshop, let’s call it, you can use advertising messages in the following ways:
- Economy workshop N - the second life of your jewelry;
- Jewelry workshop N - we work only with diamonds;
- Repair and engraving in 15 minutes - jewelry workshop N;
- Everything new is a well-modified old one. Creative workshop N.
In such a short message, your task is to tell the client how you differ from others, to be remembered and stand out.
Mistakes when choosing a niche
The most common mistakes in the process of choosing a niche are overconfidence and lack of specialized knowledge. It is impossible to correctly formulate your offer in the niche for business clients if you do not know elementary laws document flow in large companies. It is impossible to engage in the trade of tableware for restaurants if you have no idea about the rules of table setting, serving and presentation of dishes, selection of stylized tableware, etc.
The arrogance of many entrepreneurs is often expressed in the fact that they choose a niche, relying only on their own opinion and understanding of the market. If you do not spend, then you are completely unprotected from risks. As a result, the niche turns out to be unclaimed. For example, if you didn’t bother to interview customers in advance and decided to start delivering groceries to your home. As a result, it turned out that such a service is in demand among a very small percentage of the population, mostly elderly people with low solvency, since for the most part, people tend to choose the products for their table themselves and get a certain pleasure from it.
Another mistake is insufficiently clear visualization and an advertising message, from which the client does not understand what you do. For example, here's one local Internet provider who has decided to engage in the provision of security services will most likely tell the average city resident that we're talking about about IT data security, rather than about the fact that the company provides security agency services. To a person who does not know this brand and is poorly versed in the world of Internet services, such advertising will not mean anything at all.