Ironically, the worst mistake starting entrepreneurs commit is aiming to be best at everything. They want to be a business that sells everything, caters to everyone, and answers every problem.
What makes this “good” thing actually a bad thing? Well, when you’re too broad with the products and services you offer, you’re up against bigger competitors. You’ll find it challenging to get a slice of the market share and your appeal to audiences wouldn’t resonate that much.
When starting a business, it’s important to find a profitable market niche. Here are ways to do exactly that:
1. Zero in on a specific market’s specific problems
A business has the potential to become more profitable when you’re able to hit the specific interests of particular audiences. For instance, you already know you want your business to target female customers. Narrow your target audience further by — let’s say, catering to working moms who can’t make nutritious meals for their children. Now, you just thought of a healthy meal delivery service business idea.
Another profitable niche business that’s booming today is elder care franchise opportunities, especially now. Baby boomers are growing more rapidly, and the demand for services like respite care, errand running, or pet sitting has since been increasing.
2. Look at trends
What’s popular can give you an idea to the gaps and opportunities you can fill in. Mobile use, for instance, is trending today. Entrepreneurs are harnessing this to grow their businesses, developing apps for almost all kinds of services. This is from booking airport transfers that cater to travel junkies to meditating techniques for sleep to those who have trouble sleeping. Some of these apps have quickly become the biggest money-making machines today.
Research for trends both online and offline. Engage in conversations on social media and tune in to real life talks in bars, restaurants, or even at your own home.
3. Reflect on your interests
Sometimes, you don’t have to look far for a niche. No matter how odd your interests may look like, explore them, as you’ll soon find out that there are other people who are also interested in them. This is how cat cafes and dog restaurants came to be, or even the face-slapping massages and doll restoration hospitals. Explore your interests, then try to get a feel of the market’s response through surveys.
Your business can’t sell all and serve all. Identify your niche before plunging into any industry. That’s one of the best ways to start on the right foot.