1. Think about the problem and if you can solve it
Think of a problem that a certain group of people has. We say that you should think about your expertise because you will have to be able to solve it, have the backbone to do it and, obviously, passion.
2. Explore that problem and its demand
You can use tools like Google Trends . This free platform can help you find out how in-demand your idea is in your niche market .
For example, if you had searched on Google Trends at the beginning of the pandemic, you might have found that selling yoga mats would be a good idea. It's about finding not-so-traditional tastes that are on the rise.
3. Imagine the clients you could have
Part of finding your niche is phone library starting to think about what kind of customers you want to reach and help.
Take your general idea and double-click on it. For example, you'd like to sell clothing because you know about it and it's what you're passionate about. What kind of clothing? What needs do the people you want to wear have?
4. Put your product or service in check
Questioning your product or service is important to defining your niche . It is also a way to ensure that it is profitable. To do this, you can ask yourself:
Do your customers have enough money to pay for your product or service?
Do you have enough reasons to buy it?
Can they easily find you through any channel?
What is the competition like in this niche market ? (If there are few of them and your differential has a lot of potential, feel free to invest without hesitation)
5. Don't stop specializing
Learning about your niche market has to be constant. The more you know it, the greater the value you can provide. You will have more sales opportunities, the power to set a higher price, better target your communication efforts and a greater difference from the competition.
Types of market niches
The most common types of market niches are:
Groups with special conditions . They have specific qualities and are not niches that everyone is willing to explore. For example, bakeries for people with celiac disease.
Age groups . While age can be very general, you can explore what specific needs certain groups have. For example, toys specifically designed for 2- to 3-year-olds.
Groups by occupation . You can think of a profession and what particular items or services they need. For example, a business that only sells medical uniforms or creative products for graphic designers.
Gender groups . Like age, this can be a very general segment. Don't focus only on men or women, you can broaden that spectrum. For example, you can think about a clothing business for non-binary people.
Groups based on ideology and values . More and more people are looking to buy products or services from businesses that follow certain values. These can be social or environmental. For example, you can think of a vegan makeup business.