By definition a niche market is a portion of a market that you've identified as having some special characteristic and that's worth marketing to (Lemer, 2007). Creating a good niche involves following this seven-step process:Ã¢ÂÂ¢Make a wish list. With whom do you want to do business? Be as specific as you can: Identify the geographical range and the types of businesses or customers you want your business to target. If you don't know whom you want to do business with, you can't make contact.
Ã¢ÂÂ¢Focus. Clarify what you want to sell, remembering this: a) You can't be all things to all people and b) "smaller is bigger." Your niche is not the same as the field in which you work (Wilson, 2008). A retail clothing business is not a niche but a field. A more specific niche may be "maternity clothes for executive women." Your niche should arise naturally from your interests and experience.
For example, if you spent 10 years working in a consulting firm, but also spent 10 years working for a small, family-owned business, you may decide to start a consulting business that specializes in small, family-owned companies.
Ã¢ÂÂ¢Describe the customer's worldview. When you look at the world from your prospective customers' perspective, you can identify their needs or wants. The best way to do this is to talk to prospective customers and identify their main concerns.
Ã¢ÂÂ¢Synthesize. At this stage, your niche should begin to take shape as your ideas and the client's needs and wants coalesce to create something new.
Ã¢ÂÂ¢Test. Once you have a match between niche and product, test-market it. This can be done by offering samples, such as a free mini-seminar or a sample copy of your newsletter.
Ã¢ÂÂ¢Go for it! It's time to implement your idea. For many entrepreneurs, this...