Have you ever considered the importance of a niche when starting a business? We will investigate why you should always think about this and its impact on your business venture. What’s more, we will include how you can figure out what niche is best for your business. Spoiler alert- it’s through reading online reviews.
You are probably used to reading reviews when looking for bonuses, for example – Forex bonuses. (Click here to uncover the latest bonuses and their perks if you like trading FX!) But online reviews do more than help you find nice bonuses. They can also help you understand if a business niche is right for you! Are you ready? Let’s delve into this exciting topic:
Does a Niche Matter?
People often talk about niches and why their business is in this or that niche. But does it matter? It does. You see, the market is quite extensive, comprising different industries and different subsets of consumers. And try as you might, you cannot meet everyone’s needs. So, you must understand the need you want to meet and the subset of consumers you want to reach. It makes it easier for you to get a market share in that niche and rack up loyal clients.
What are examples of niches?
- A clothes company,
- A clothes company that sells jeans, and
- A clothes company that specializes in women’s jeans.
See? All these are niches, only that some are much more specific than others. And that’s the thing with market segmentation – you can be as broad or specific as you want.
Why Should You Read Online Reviews?
Welcome to the digital age where information is available at the tap of a button. If you were starting a business a century ago, you’d have to rely on libraries and social forums for information. And even then, it would barely scratch the surface of niches.
But now? You can go online, review a niche, and find countless answers on why a niche is good or bad. So, what do online reviews indicate?
The Competition in a Niche
One of the benefits of choosing a niche is that you specialize in a market. It’s much easier to avoid stiff competition this way. For example, if you focus on creating meal plans for women, you can charge a premium on your products. After all, they serve a unique need in the market, and not many people might be offering such services. So, you get to enjoy a lot of freedom in what you charge.
Online reviews help you gauge just how much competition you will face in a niche. For example, you might think that female meal plans are profitable, and you can charge $500 for each plan – only to find that the market is quite saturated, and you can only charge $5 for the plan. Knowing this can help you find another way to market the plans. Or you can change the plan and focus on men instead, having realized that there is less competition in male meal plans.
The Necessary Skillsets
Suppose you want to start a dog grooming service in a city neighborhood. That feels like a great idea. After all, people can avoid going all the way into town and can come to you – great niche. But do you know what it takes to delve into this niche?
An online review will let you in on:
- The costs of undertaking such a project,
- The challenges faced in grooming dogs,
- The kind of expertise you must have to groom dogs,
- The kind of people to hire in the business,
- How to deal with customers, and
- How to avoid getting into lawsuits.
These are but a few examples of points that a successful dog groomer would have to offer you. And knowing what lies in your way would help you avoid costly mistakes. For example, you might realize that the project is much more costly than you thought. Or you could find that you have everything you need to get started.
A Sense of Community
Being an entrepreneur comes with the challenge of shouldering the good, the bad, and the ugly. You make all the decisions, and eventually, this can take a toll on you. But it becomes easier when you have people online cheering you on and pointing out areas you could go wrong. Moreover, you can find your first few clients in these communities.
Once you have read about what main niches entail, you can start your search. Of course, it’s impossible to go through all the niches. So, choose those you are interested in, and let’s jump to the next section.
How Can You Choose a Niche?
There are scores and scores of niches in the market and if you want to find the best one for you, consider these simple tips:
Before you can even narrow it down to any business, ask yourself what interests you. Some people want to be up and about and do not mind a business that entails such high activity. Others are more into sitting in an office and automating everything in an air-conditioned space. And if you are too far from your comfort zone, you might feel the need to sabotage your business. So, what suits your personality and interests? Here are some examples to help you get started:
- Selling skincare products for oily skin,
- Grooming cats,
- Running a gym, and
- Providing luxury clothes on a rental basis.
See anything you are interested in? The sky is the limit. Play around with ideas and figure out just how suitable they would be for you.
We are living in an age where something can be hot this minute, and the next minute, people have moved on to the next amazing thing. Do you know how you can use this behavior to your advantage? Well, you jump on the newest trends in the market! And you can get this data from online reviews – what’s new? What’s on everyone’s lips? Then check if it matches your interests.
Who do you want to sell that trending product to, i.e., your market? It’s easy to come up with a product you love and one that’s trending. But figuring out who your market is can be challenging. And without understanding what your market entails, your marketing campaigns can be a huge flop.
So, what’s in the market? Let’s assume you want to start a healthy food meal delivery app. Who’s your market?
- Find out their ages and come up with an ideal age range which should have the highest population,
- Determine how much money they make and how much they would be willing to pay for the food,
- Understand the challenges they face and how you can solve this using the app,
- Align your product with their values – health, whole meals, fitness, etc., and
- Find out what drives them – what are their interests?
These seemingly obvious questions help you carve out the best market for your product.
It’s highly likely that another business already does what you want to do. So, how can you beat them at their own game? It’s easy. As companies grow, they tend to slack off and let go of minute yet important details. For example, a delivery company may now be making deliveries later than the customers want. Or could be sluggish with replies to customer queries. That’s a problem you can solve. E.g., you can offer to deliver goods within 4 hours of dispatch.
But failing services are not the only problems you can solve. You can also add on to what your competitors do not do. For example, you can start a pizza outlet that allows people to customize their toppings fully. If your competitor offers standard toppings, you will have the edge over them.
Think of what value you can add to your market, which will be your selling point.
See? Reading online reviews can help you understand the market needs, what your competitors are not offering, and what strategies you can use in your marketing campaigns. All the best!