One of the early steps to home business planning is identifying and focusing on a market niche. Choosing a niche isn’t always as simple as we’d like. Many of us have no idea what we like or what our skills are. Sometimes we just have too many interests to narrow down a niche or product for a home business. Below are some steps to help you choose a niche for your home business.
If technology is a broad industry, computers and websites are subsets. Narrow further down to computer software, still a very large topic. Even accounting software is a big category. Select small business accounting software for manufacturing and you have a niche. A niche allows you to develop expertise and focus talents, skills, and experience on a particular area. In essence, a niche market is a market with a very specialized offering to all the customers who require that particular goods or service.
Steps to choosing a niche
1. Write or type a list of things you like. Try to limit to 50 ideas or so, but cover all areas: apples to baseball to computers to the color purple.
2. Put the list aside for a few days. Next, look at your list and start to cross out what you aren’t passionate about. You may love baseball, but are only slightly interested in apples. Narrow the list down to 10.
3. Next to each of the top ten interests, write down why you like them. More than one reason is great, but be specific: “I like baseball because…” If you find it hard to come up with a reason, cross the interest off your list. Ultimately, you must be well-versed in the niche you choose. This means you need to be able to talk extensively about it.
4. Take a look at your list and pick out the five interests that have the most explanations.
These are the top five that you will research and find out if a market exists for them. You’ll also want to find out about the competition, a target market, and what products are related to that niche.
5. Using Google, search the five interests and see how many unique ads appear on the right hand side; go through at least three pages for each niche. This will give you a market snapshot of products or services related to each of your top five options and what people are buying.
6. Of the five, which three have: 1) the largest market, 2) the highest profit margin, and 3) the least amount of competition? Competition is good; it means there is demand for the product and niche. Too much competition means you may have trouble standing out in a crowd. Out of your top three choices that have the above three criteria, which one are you most passionate about?
If you like all three, choose the one that has the most appeal in terms of profit potential.
Use the simple steps above to help you narrow down and discover a niche for your home business. Best wishes and much success!
By Dion D. Shaw
Dion D. Shaw is the founder and owner of Homepreneurs
Homepreneurs. New Day. New Opportunity.
Homepreneurs does not endorse nor have any relationships with any of the services listed. Homepreneurs receives no compensation or consideration for its suggestions. Homepreneurs strongly urges all interested parties to conduct research and accepts no responsibility for any losses incurred.
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