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Developing a niche strategy for your business

A common path for many businesses is to find a niche market and establish a dominant position. Learn how you can corner a specific industry by meeting unmet needs and solving unique challenges for customers within that niche.

Choose an available niche market

Niche markets are usually small with limited room, so be sure to research your competitors, the size of the market. and how much of that market might be available to you. If competition is limited and demand seems high, your business concept may be viable.

Offer a unique product, process or service

One of the best ways to successfully serve a niche market is to be one of the few businesses (or the only one) selling a particular product. process or service. The trick to creating the right product or service is to look for unmet needs and pain points specific to the market you want to serve. Then, create an offering to meet needs and solve challenges. Be sure to perform ample research to uncover specific needs and issues.

Market, market, market

Marketing is critical for niche businesses to continually build awareness around a product or service. Make sure that part of your marketing plan is focused on educating potential customers on how your product or service can solve their challenges. The more you market. the stronger the relationships you will build among leads helping to convert them to clients and build inroads to your niche.

The principles above can help your small business create a strong competitive advantage within a niche market. Even if you already have a strong hold within another market. consider expanding your offerings to tap into new niches and increase your revenue potential.

Riches in the niches

According to longtailpro.com, consider a few of the best markets to enter and why:

Fitness

This market is a huge evergreen niche, so there's lots of potential.

Beauty and health

This includes products and services that address both men's and women's concerns with body image.

Mental health

There is more self-awareness today than ever; individuals love to learn more about themselves and work toward a better life.

Hobbies

Hobbies of all kinds represent potentially strong niche markets from sports, gaming, and arts and crafts to home renovations and outdoor activities.

Food

This is another massive evergreen niche market with a lot of sub-niches to consider, including gourmet foods, home cooking and everything in between.

Financial stability

Cultivating a niche as a trusted authority for saving, investing, budgeting and other financial efforts represents another potentially lucrative niche.