A business niche is basically just a specialty that your business excels in. Knowing what your niche is can make generating a profit a lot easier to do. However, many small businesses fail to identify or even understand what niche they cater to. If you are a small business that is looking for a strategy to expand your profitability then the time has come to evaluate your niche situation.
Step #1 – Describe Your Business
A good place to start when trying to find your niche is to simply describe your business. You will want to examine what products or services you offer and you will want to describe who your usual customers are. This information will create a typical business description.
Step #2 – Isolate Your Products and Services
The next step is to isolate each of your products and services. You will then create a description of each one. This description needs to be very specific and include a price list.
Step #3 – Find Alternative Markets for Your Products and Services
Since your competition is most likely going to be marketing their products to the same demographics and niche markets as what you identified as your usual customers, step three is to figure out if there are alternative markets for your products. For example, a cloth diaper service may sell used (clean) diapers to the auto industry or to metal workers to use as a buffing cloth. Alternative markets are going to be where you find untapped niches that you can expand into with little competition.
Step #4 – Create a Marketing Plan
After you have identified new niches for your products and services you need a marketing plan. This plan will identify the demographics of people and companies that would be interested in using your products or services in ways other than what the products were originally designed for. You will want to take a creative approach your marketing plan and take advantage of the Internet marketplace.
Step #5 – Create a Budget
Expanding into new markets can be financially risky. A good way to enter a new market is to test the waters with a small targeted campaign. This way you can determine if the niche market you identified is really interested in your products and services. If they are not then you can find another market for your products. However, if you get a good response from your test market you can go full speed ahead with a larger launching campaign.
The budge for the initial test launch into your niche market will be modest. You may only want to invest a couple hundred dollars into this experiment. If the response is good then you can invest more money.