Analyzing your Niche Potential
Analyzing your niche potential is very important for the business.
The tasks involved in researching and analyzing your niche potential market are very demanding and challenging. If the intention of targeting a niche market is derived from a hobby, then it is a significant matter. Where your business has a purpose of selling products or services, then it is important not to repeat the
mistakes that other businesses have made. As eventually you can become disgruntled and discouraged to continue if you do not see results. To avoid this scenario, it is advisable to follow certain guidelines that can assist you in your research of the niche potential.
Drilling down into analyzing your niche potential
It is obvious that any product you want to sell in the market has to be appealing to the general public. To gauge its true potential, the easy and most economical way is to search its attractiveness on the internet. Make a list of three to five niche ideas and type them in the search box of Google Trends, Amazon.com or Adwords. The graph will appear that will reflect from the most popular ideas to the least popular ones. This is just the first step in he process.
The next step is to visit the Google Adwords webpage and type in your niche idea in its search box. When you do this you will see the paid sponsored listings at the top and the bottom of the page. Through this you will know which niche ideas are being financed by paid ads, giving you more insight on the niche potential. Last but not least, type the niche idea in to the search box of Amazon.com. Here, you will locate books on your niche market and niche products, if any, to give a more refined conclusion on your niche decision.
Fads on analyzing your niche potential
The next method to determine the niche potential is by matching it with the possibility of it being in a fad or short lived market trend. This is the issue that is rarely touched on by many businesses. It has a major bearing on the outcome of your decision. You will need to be vigilant and guarded, irrespective of the amount of consumers purchasing, make sure the niche market idea or product is not a fad.
Market trends and Fads
For example, in the business of property investing, a good number of investors jumped into the HMO niche market, letting properties as houses of multiple occupation with Students as the target market, a solid niche market. However, I witnessed the introduction of higher student fees and restrictions on overseas student visas which resulted in a fall off of student numbers, many of these investors with large HMO’s jumped into the next property fad “serviced apartments” as a way of holding on to their investments and creating higher returns. However, their appeal and attraction may be short lived as the Government determine how to restrict the market. So you need to be aware that the niche you are pursuing does not fall into the fad domain.
Does the niche have competition
Last but certainly not the least is the competition method. There are two thoughts on this method. One group of people believes that the niche identified is not targeted by any business. In other words, there has to be zero competition which is very unlikely in today’s world. The other group of people is of the opinion that the niche market has to be competitive. A niche with competitors will provide you with substantial profit compared to niche market with zero competition. Hence, the competition map has to be studied well in order to have a conclusive outcome on the niche potential.
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