How to figure out a niche for your online business? (Steps + Tips)
Are you struggling to find your business niche? Read to know what to do exactly to come up with the best niche for your online business
In every resource, the initial step of starting a business is to narrow down the “niche” of the business.
The basic three steps before you sink your teeth into the business as an aspiring entrepreneur is to know the core part of running a business.
- Knowing the requirements to start an online business.
- Knowing how to write a business plan.
- Knowing to pick the right kind of niche for your business.
If you narrow down all three, you are halfway there to attract the right kind of audience to your business.
In this blog, you’ll get to know what is a business niche and the simplest way to find the right niche for your business.
We even threw in some examples for better understanding and a short tip-like guide to educate you on writing a business niche statement for your stakeholders.
Let’s get started!
What is a business niche?
The business niche is how an entrepreneur works on their business around a specific area in which that business can flourish.
A niche-based business helps the entrepreneurs to serve a particular kind of audience with very particular interests and preferences.
Charlene Walters, a brand mentor, says that a niche helps a business to be unique from that of the competitors.
3 Reasons why a niche is important for your business
Specializing in one particular niche can help your business to be a market leader with consistent, high-quality products and services.
It sets you apart from the competition and gives you an edge with the target audience.
A high chance of being the customer’s favorite with your exciting offers and other low marketing strategies.
How to find your business niche in 5 simple steps?
This is the step-by-step guide that helps you figure out your business needs more efficiently.
Step 1: Analyse your interests and passion
Why do authors, vloggers, and other entrepreneurs keep stressing to find your passion?
That’s when you’ll have an interest in running the business more productively and find futuristic solutions to make it even more successful.
Try reading The Element: How finding your passion changes everything by Sir Ken Robinson and Lou Aronica. This book tells stories on underachievers who grew up into a success when they found their passion.
Step 2: Find a solution to the problem
There are two ways to solve a problem using an idea that an entrepreneur must know while choosing a niche for their business:
- Either they have a solution for the problems (in the present) of their target audience.
- They discovered a problem in the near future that is about to burst out and give a solution for that problem.
Any product or service that you introduce into the market must have a problem-solving nature.
Step 3: Perform competitor analysis
Well, when you choose a niche, it is important to know how your competitors are performing in the market with the same niche.
The market must not be saturated. And unless it’s the best idea that can revolutionize the market, having the first entrant advantage is quite a risk.
That’s why it is always safe to check the financial, economic, and customer’s temperament before making a decision based on your niche.
Step 4: Test your unique niche in the market
Competitor analysis is the theoretical process of seeing whether the niche works in the market or not.
But the real-time testing gives you an actual idea as to what your target audiences (based on geographical and demographical reference) like when they have access to your products or service.
Step 5: Find a unique selling point
Though you might not be the first entrant with a unique niche all the time, there is always a unique selling point that’ll help you be the customer’s favorite.
The unique selling point can be based on features and benefits, innovation, etc.
The words you chose to describe the USP must be crisp and catchy.
2 Businesses that took their niche seriously!
These 2 examples are the pioneers of the business niche which gave them the first entrant advantage. Let’s take a look!
Airbnb is an online vacation rental marketplace that connects people who have houses to rent and people who want a place to take a vacation according to their budget.
Their business model is so successful that many other entrepreneurs try to replicate and develop airbnb-like software solutions, customize them according to their business niche.
Amazon started with selling books online using their website. Before that people never dreamt of ordering books online. When Amazon came into existence, the book sales were skyrocketing.
And they slowly introduced themselves to various other goods and services to deliver them to the doorstep of their customers.
The world’s first online food ordering and delivery service was introduced in 1195 by World Wide Waiter (aka Waiter.com)
Tips on how to write a business niche statement
Niche + Problem + Solution + Promise = Success
This is the success formula for writing a niche statement for your stakeholders.
- Write a short, crispy and catchy copy as a niche statement.
- Understand the emotions of the target audience while stating their problem.
- Be enthusiastic and positive while talking about the solution to their problem.
- Be concrete with the promise. Make a promise only if it is realistic and achievable.
Hope these steps to figure out the right niche for your business help and the niche statement is something that every business owner has to work with their team to gain perspectives and shine better!