Whether your end-product is in digital form, service or physical; your solutions (products) need to be desirable to your targeted market. That way, you can improve your chances of succeeding in your startup business. An indecisive audience that shows mixed reactions of interest in products (likes vs buying intent) makes it challenging to spot a niche that promises to generate sustainable income. By following these five simple steps before creating niche solutions, not only will you minimize the risk of creating unwelcome products; you will also dodge many business startup pitfalls.
Presumably, you already have one or more niche/business ideas. Otherwise, you wouldn’t be reading this article. If not, care to visit this post or additional info here.
Back to the purpose of this article;
Step 1: Refine your niche ideas according to relevance.
Without knowing the demands of your targeted audience, you could be forcing a product they don’t even need, which could be a complete waste of your resources. So,
Research your niche ideas with a “Who does that?” approach.
Woah, Wait! Who does that? You’ve probably asked this question numerous times before; when you hear a mention of something that evokes some form of interest in the subject. It ignites the speculative side of your intuition, and make you develop an interest in wanting to verify what your intuition is telling you. Yep, the curiosity that compels you to ask the right questions, not only focusing on knowing the statistics but also wanting to understand the current events, and the circumstances leading to the outcome. That’s what you intend to unveil when researching your niche ideas. The research approach will work if your niche ideas are on things you are passionate about; otherwise, you may not enjoy researching your niche. The following questions will help you understand your niche audience and the things that matter to them.
- What problem(s) will you solve with your business idea? Do they exist, or are they your imagination? Seek validation.
- Is it only you who sees them as problems or do others also do? Think of the methods you will use to find out
- If others see them as problems even, who is affected and how? Think of whom is likely to buy your solution and the places they would hang out
- If the affected exist, how are they surviving with those problems? – Think alternative solutions to the issues you are trying to solve, and how you will find out if they are available.
- Are the survival methods they use good enough to keep them silent? – Think of the sources or platforms your targeted audience will use to report their problems.
Alright, you’ve got the hang of how the traditional niche research approach works. But hang on, you know that two people can try to find answers to the same questions but end up with different search outcomes, right? You need to know the research techniques that work, something you can master through practise, observation or learning if you’re not a natural detective. Head over there for some brilliant practical online research techniques, you will find in this book.
Sometimes you do not need to rely on the answers you get when asking direct research questions. I have heard that one should believe people’s actions, not what they say. Therefore;
Refine your niche ideas to find relevant niche markets using keywords
This approach will help you find the search queries your audience submit when using the search engines to find solutions to their problems. Even when they don’t answer truthfully to the direct market research questions; you asked above when conducting research. The search engines, Google, for example, record what they search for online behind your back. Therefore, giving you a leeway to finding niche markets using keywords.
Of course, not everyone uses the search engines so a quick reminder, we are dealing with a niche here, a smaller segment of a broader market, which represent the interests of an audience with unique characteristics. Want to know the traits of an ideal niche audience? Head over here.
To strip your niche ideas according to relevance using keywords, you need an advanced keyword research tool that can simplify the task for you. Look here; how to use this method in the form of a product review.
Step 2: Find the best SEO keywords
The goal here is to find the most searched things online associated with your niche. You wouldn’t want to create a product that nobody is looking for, would you? So, your best bet will be to find ideal keywords (from step 1 above) that have the highest or favourable average monthly search volumes. Preferably with less competition in terms of those providing solutions (suppliers). Go with what floats your boat.
Try it for free, enter a keyword of your choice below:
Analyse your search results using the details I provided here, in Jaaxy review, as a guide.
Based on your selected keywords, you can then determine the type of product to create for your niche ideas. You may be surprised how your initial business idea unfolds to something different but still, relating to your niche.
Your initial idea could be to sell stylish clothes for plus size women as a retailer. But through keyword research; discover that it is the unique, elegant designs, material patterns, or even designing Apps that people search for online which are in short supply. That takes you to the next point;
Step 3: Choose a business model
You have found the best keywords for your niche idea(s) in step 2 above. Bear in mind; your best SEO keywords represent the needs of your targeted audience. But how will you make money? With all that information you have gathered above, you need to adapt or design a suitable business model for your niche business requirements, of course, based on the type of solutions appropriate for your audience. It could be an information product, a physical product, or even a service. For online entrepreneurs, examples of business models to adopt may include affiliate marketing, eCommerce, Software as a service (SaaS) and more; you need to dig deeper into various models to know which model is suitable for the type of solution you intend to provide.
Gather information relating to how the model works, understand the industry standards you need to comply with, and prepare a list of all the resources you need.
Step 4: Determine the feasibility of your business idea.
Alright, you have gathered all the information you need relating to your startup, can you begin to move towards setting up your business? Not so fast, is your idea actionable? I mean that could be a game-changer. In most cases, this is the stage where most business ideas are parked; allowing the dreams of becoming an entrepreneur to remain unfulfilled.
With a little twist to the SWOT Analysis; an acronym for Strengths, Weaknesses, Opportunities, and Threats, determine if your business idea is actionable or not by going through the following checklist:
These are the positive attributes you possess as an individual, that have the potential to impact success in your business venture. You can identify them by answering the following questions:
- What advantages do you have against others in your niche
- What are the things you do better than anyone in your selected niche or business venture
- What do others in your niche see as your strengths
- What should you improve to make your niche business idea executable
- What should you avoid relating to your niche idea
- What could lose you sales
- What do others in your niche see as your weakness
- What exciting trends and developments are you aware of relating to your niche?
- What are the advantages that might arise from changes in technology, government policies, social patterns and economic changes?
- What options do your strengths open up for you to your niche?
- What obstacles do you face in your chosen niche?
- What is your competition doing that you should be worried about?
- What could erode your capital injection?
- What risks do your weaknesses expose to your business idea?
Note: An in-depth analysis of SWOT will help you determine if your business idea is actionable or not with your chosen model. That will help you decide whether to implement or park your concept.
Where possible, you can;
- Utilize your strengths and outsource your weaknesses
- Put strategies in place to counter your shortcomings and the risks associated with controllable threats before starting your business venture.
Starting a business requires a lot more than having a business idea and enough startup funds. It’s essential to research your niche, understand the applicable business model, and match all against the requirements and what you have to avoid startup pitfalls.