We have come with a great idea for a business but don’t know if you are ready to implement it yet. Before going any further, the next step is to find out who your market is.
There are two basic markets where you can sell: consumers and businesses. These divisions are fairly obvious. For example, if you are selling women’s clothing in a commercial establishment, your target market is consumers, whereas if you’re selling office supplies, your target market is companies.
In some cases, for example, if you have a printing business, you can offer your services to both businesses and individual consumers. No business, especially small ones, may sell or provide services for all people. The more closely you can define your target market, the better is for you.
This process is known as creating a niche and is a key to success, even for larger companies that sell different products to consumers. An example of this is Wal-Mart and Tiffany & Co, which are retailers, but have very different niches.
Instead of creating a niche, many entrepreneurs make the mistake of wanting to cover “all over the map” claiming that they can do many things and be good at all of them. These people quickly learn a hard lesson: Smaller is bigger in business, and is not due to try to cover other markets, but only when you start your business. It is much better to focus on a specific subject.
Here are seven tips to find a niche business :
1. Think about who the potential customers
Who do you want to do business with? Be as specific as possible: Identify the geographical distribution and types of businesses or customers you want to target your business. If you do not find with whom you can do business, your business does not prosper.
You must first recognize that you can not do business with everyone. Otherwise, you run the risk of exhausting yourself and confuse your customers. Today, the trend is toward smaller niches.
2. Approach clarifies on what you want to sell
Always remember that:
- a) You can not sell everything to everyone and
- b) “smaller is bigger.”
A niche does not mean a bunch business especially. For example, a clothing store retail is not a niche, but a bouquet. A more specific niche may be “maternity clothes for women executives.” To facilitate this process approach, then I present a list of steps that might help you:
- You make a list of things you do best and implicit knowledge in each of them.
- List your achievements
- Identify the most important lessons you’ve learned in life
- Look for patterns that reveal your style or approach to problem solving
Your niche should arise naturally from your interests and experience. For example, if you’ve spent 10 years working in a consulting firm, but also another 10 years working for a small family business, you can choose to start a consulting business that specializes in small family businesses.
3. Describe the client’s vision
A successful business uses what social golden rule: ” Treat others as you want to be treated “. When you look at the world from the perspective of your potential customers, you can identify your needs or desires. The best way is to talk to potential customers and identify their main concerns.
At this stage, your niche should begin to take shape as your ideas with the needs and desires of the client come together to create something new. A good niche has five qualities:
- It takes you where you want to go. In other words, it fits your long-term vision.
- It is requested: that is, there are potential customers.
- It is carefully planned.
- It is the only business of its kind in the city (remember we are talking about niches).
- It allows you to develop different skills to get more benefits if you want to cover more business activities in the future, ensuring the long-term success.
Now is the time to evaluate your proposed product or service in the basis of the five criteria set in Step 4. For example, you might find that the idea that you had in mind requires many business, which it could seem very stressful in your life after a while. That means that the idea does not meet one of these criteria “will not get you where you want to go.” Therefore, you may want to consider moving to another business idea.
6. Market test
Once there is a match between you and your business idea, have market tests. It gives people the opportunity to try your product or service for free. This can be done by offering samples, such as a tasting or a limited copy that basically show your creation. The test should not be expensive. If you spend huge amounts of money in the initial market research , you are probably doing something wrong.
7. Do not think it’s time to implement your idea
For many entrepreneurs, this is the most difficult stage. But fear not: If you’ve done your homework, the market will enter a calculated risk, not just a game of chance. Just patient is required! Patient, patient and again patient!
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