How to Find a Niche for Your Online Business – Startup Mindset

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All types of online businesses have been enjoying massive growth in the past few years. Advances in technology and changes in consumer shopping habits have increased the demand for online products and services. If someone is thinking of starting an online business then now is the best time. However, there are several things a person should know before starting an online business. One of those things is knowing which niche to chase.

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We often get questions from new entrepreneurs about finding the right niche for their online businesses. In this post, we will walk you through the process of finding the right place for you.

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What are niche markets?

The ability to fully focus on small and specific areas of your business will enable you to earn maximum profits. Niche markets are well defined and specific segments that you have chosen to fully focus all your marketing efforts. It is important to note that a niche is not defined but created.

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This is done by identifying the needs, wants and needs which are not satisfied by other business ventures. Therefore, you must identify your niche markets before starting your business. Below are ways to find specific markets for your online business:

Start with your interests and areas of expertise

Starting a business and sustaining it is quite a challenge. This is especially true if you are dealing with issues that are foreign to you. It is important that you make a list of all the areas that interest you and also list the topics and areas that you are interested in. Take an in-depth look at what you are good at and learn a lot about it.

A niche market is created by gaps in the market. You’ll be able to identify those gaps by doing some research on other competing firms. It’s important to help you figure out whether you have the opportunity to stand out among other firms. Similarly, you can also find ways to create a unique product and therefore differentiate yourself from your competitors.

Finding a Niche Within Major Markets

One of the keys to finding the right niche is looking at some of the key markets and identifying the underserved segments within that market. For example, the cosmetics and beauty industry generates about $62 billion annually, of which about 36.4% is for skin care. A potentially ineligible market may be women of color who are over the age of 30 and experience dry skin.

Here are some of the major markets with areas of opportunity for your niche:

Fitness and Weight Loss- One of the huge markets that is clearly going nowhere is the fitness and weight loss market. This market can be either fitness training, equipment, and gym memberships or nutritional supplements, diets, and programs. The weight loss industry alone makes about $60 billion a year with fitness (mostly gym memberships) totaling $27 billion. So if you have a business idea for anything related to fitness and weight loss, it’s best to act quickly.

Dating and Relationships – About 45% of US residents who are 18 years of age or older are unmarried. Compare this to 37.4% in 1974 and you can see why any help in the field of dating and relationships has been attractive. Although a large percentage of relationship support is targeted at romantic relationships, the niche market that may be underserved are other important human relationships such as family, friends, and co-workers.

Pets- It is said that no matter how much money people will spend on their children and their pets. It appears to be true that Americans spent a record high of $66 billion on their pets last year, according to some reports. This revenue represents an increase of $6 billion over the previous year.

Self-care products and cosmetics- Even though there are some big players in their field like L’Oréal and Procter & Gamble Co, there’s still a lot of sales to be done. With many Instagram influencers becoming spokespersons for cosmetic lines, many have taken the opportunity to launch their own stores for these products.

Clothes- If you have an idea for a clothing line, brand or any type of apparel, it is a good idea to start the process of selling your products right away. The apparel market generates $356 billion annually in the US and an estimated $1.3 trillion worldwide. Finding a niche market in this area is as simple as selling a unique brand of T-shirt from your online store.

Subscription Boxes – With the rise of companies like Birchbox, the subscription box industry now generates $5 billion annually. Years ago many people were labeling subscription boxes as a fad. But creating and delivering quality products never goes out of style and the industry continues to grow stronger.

Self-improvement – Everyone wants to be a better version of themselves, right? This is one reason why the self-improvement industry is such a lucrative segment. This section may include books, programs or products that help people improve their lives.

keep an eye on trends

Keeping up with what is trending is an important step in choosing your niche. However, a word of warning, chasing trends is very dangerous. Fidget spinners were a hot commodity in 2017 and everyone wanted one. But, by the latter part of the year, all the hype was gone and interest in those types of products had waned and so did the sales of the items.

To help research trends and the population’s interest in them, we recommend that you use these two tools:

Google Trends

trendhunter

Market research of all kinds is an important activity for any online business practice. However, when looking for the right niche, it’s even more important to pay attention to trends.

Identify problems you can solve

Make a list of all the problems your target customers are experiencing and identify the problems you can solve.

Hold a one-on-one chat session with someone from your target market. Try to have a clear outline of the questions to be asked during the session. Go through the forums that are related to your specific niche and take note of the questions and issues raised in those threads.

Another way to identify problems is to listen to what people complain about. Go on Twitter and search the word to see what people are complaining about the brands and products in the area you’re leaning towards. Also, go to Amazon and read reviews of the products sold. Take a look at 1 and 2-star reviews. What are some things that people are unhappy about?

What is the profitability of your niche?

After identifying your passion, interest and the problems you can solve, it is important to calculate the profitability of your niche. Browse through the products available in your niche and identify any advertised or available offers. If you can find certain products you should look at their price range and determine your rewards proposition. However, if there is no offered product in the niche you have chosen, you will need to identify another niche market.

test your idea

With all of the above processes and knowledge of identifying your niche market, you should be able to create a niche and test the idea. Create a landing page where you can pre-sale the products you’re developing. To increase visits to your page, identify an advertising agent and pay them to advertise your products. Social sites like Instagram are also a great playground to see if people are interested in what you have to offer.

While they are good ways to gauge interest, the best way to test an idea is to launch it and limit the downside. We often preach this type of “action focus” on the startup mindset because it is something that separates highly successful entrepreneurs from mediocre entrepreneurs.

conclusion

In online business, it is important to identify a specific market and dominate the segment completely. To get the most out of your online business, you should try to find a niche regularly. Don’t do it once! This will help you expand your business opportunities. Finally, note that a niche market will also help you acquire more customers as your aim is to meet their particular needs.

Once you find your niche, you can focus on building your business by doing the things you need to be successful online.

Tom is a member of the editorial team of Startup Mindset. He has over 6 years of experience in writing on Business, Entrepreneurship and other topics. He mainly focuses on online business, digital publishing, marketing and eCommerce startups.

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article tags:

Featured · Find your way · Grow your business · Product development · Sales

Article Categories:

Find your way · Grow your business · Product development · Sales · Technology



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