The business world isn’t going to get any less competitive. The market is saturated with companies competing to stay afloat let alone profit, and this is a very daunting environment to start a business in. By finding a niche market or product one can start a successful business and avoid overly competitive industries.
A niche market is the subset of the market on which a specific product is focusing; therefore, the market niche defines the specific product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact.
Niche Market Example 1
Let's say you want to create a fast-food chain, and the current market is saturated with places that already serve burger, salads, fries and milkshakes. You could start a chain that only serves fries and milkshakes. Fries and milkshakes are one of the popular cheapest combo meals of most fast-food chains. The store could offer different types of fries, say yam fries, curly fries, baked fries and thick fries. Now all the fries and milkshake lovers out there have one place to go to get any type of fries they want.
Niche Market Example 2
Let's say you want to start a web design company and the market it totally saturated with web designers and contractors. You could start a company that specializes in only real estate web design, photography website design, or online clothes stores.
People do search(Google) for specific services covered by more general companies. A niche-company-website will outrank a multi-service-company-website, for the same service, on the search engines.
Sense most companies have websites; we can use some free Google tools to help us find our niche product, here's how:
- First Google 'google keywords tool' then click on the keywords tool link.
- In the 'Word or Phrase' field, type in the product or service you want to start a company around. Example: "handmade hats"
- Click the 'Search' button.
- Click the 'Local Monthly Searches' button.
- Now Google is showing us phrases people google , related to the phrase we entered, and we've arranged the order from most local monthly searches to least.NOTE: local monthly searches is how many times people in the USA google the phrase each month.
- We are interested in any grammatically correct phrases that have 'Low' in the 'Competition' column while having the most 'Local Monthly Searches' possible.
- Notice the word 'milliners'. It has the highest 'Local Monthly Searches' and the 'Competition' column is 'Low'.
We've just used the Google Keywords tool to find what appears to be a niche market for milliner hats. It's that easy...
Try searching using other phrases besides 'custom hats'. Sense we now know there's a demand for milliners, try searching for 'custom milliner hats' or 'handcrafted milliner hats'. Do your research to find a niche product that in demand with minimal competition.