finding your niche: 5 steps to find your target market
Himanshu, an Indian entrepreneur, once said, “To become rich, first go and find your niche.” As a newer business, the best way to establish a consistent customer base is to create a niche and target them specifically. Here are 5 simple steps to find your target market.
Step #1: Identify what problem you solve
Following your passion can lead to your dream business, but every business must solve a problem to be successful. This is one of the main mistakes by business owners. They may create a great product or service, but the marketplace has no need for it. The television show, Shark Tank, features several small business owners that have developed what they believe to be a viable product or service. The most successful owners saw a need and created a product or service to solve that need.
For a bit of comic relief, watch this video about a business idea that may not solve a problem:
Step #2: Narrow the target market
To narrow your target market, you must build the profile for your ideal customer. Consider factors like:
- Buying Habits
It is important to not boil the ocean, or in other words target everyone at once. Narrow your focus initially to build your customer base, then begin to slowly expand outside of this target market.
Step #3: Evaluate your competition
Before you go into business, you must first evaluate your closest competition. You should look to see if any businesses have tried to sell your products or services in the past, see why/if they were successful, why/if they failed, and see areas where your business can improve to be successful. You must find competitors that closely compare to your business’ size, services, and products you offer.
Step #4: Survey the marketplace
Now that you have done your research and identified your problem, it is time to see if it will work. We suggest that you survey the marketplace to see how customers will respond once you official are open for business. This does not have to be restricted to a questionnaire. For example, if you are considering opening a restaurant, find an area where you can setup a pop-up shop and have customers sample your product. The most important part of this step is to listen to your customer feedback and adjust.
Step #5: Market to your new customers
You have completed all the necessary steps to opening a successful business and the final thing to do is to tell people you are open for business. Because you now have a targeted customer base, personalize and customize your marketing as best as you can. Speak the language of your customers and do what you can to appeal to their interests.
Spartan Marketing Group specializes in creating business plans for small to medium sized businesses. For specialized plans, contact us today!