A niche fills an unmet customer need.
Your niche is going to be based around three things:
Your unique capabilities and strengths, your core competencies, your specialized knowledge, and experience,
What you love to do, your passion,
Where there is enough demand to produce the desired profit.
People are buying unique niche products and services that no other business is offering. Look at successful products and services and try to find the niche that makes them successful, unique, or different from the rest.
Research your competitors/potential competitors: Can you do some aspects faster? Can you charge less? Can you give more of something? Can you provide it on weekends or holidays? Can you eliminate a negative for the inconvenience for your customer that your competition is not doing?
Better-Faster-Cheaper. Lower Price / Higher Performance / More Convenient Location / Quicker / One-Stop-Shopping / Higher Quality / Better Service. Service can be the differentiator.
Deliver exceptional value as perceived by the customer/potential customer.
Ask your customers/your potential customers what they like, what they hate, what they can do without, what they want more of, what they want less of. Ask! Ask! Ask! If you don’t ask, most won’t tell you.
Add value in a way that attracts a particular kind of customer!
Focus on a Growing market or industry and a high-growth market segment within that industry where demand exceeds supply, where there are unmet customer needs.
The 14 Commandments of Creating a “Wealth-Pulling” Niche! (Roy Primm)
To out-niche your competitors you must focus on these "14 commandments" of niche creation at all times. Observe the ones you can apply to your business, product, or service.
- "The Principle of Adaptation" - The simplest way to create a new idea is to do what others in another business or industry are doing (have done successfully). Next, see if you can adapt it to your own business, product, or service.
- "The Principle of Addition" - Can you add something extra to your product or service that your competition doesn't have or isn't doing?
- "The Principle of Combination" - "What positive elements can you combine from another product or service to make yours better?" A candy bar did it with simple peanut butter and chocolate, and made a successful new product. So can you.
- "The Principle of Customization" - Can you find little ways to personalize a part of your product or service? That's a quick, easy, and cheap way to create niches. Can you make your product or service more personal and less cookie cutter?
- "The Principle of Ease and Convenience" - Can you find more ways to make your product or service easier and more convenient to buy, use, or own? Then you'll have a strong niche.
- "The Principle of Elimination" - What negative or inconvenience can you eliminate for your customer, with your product or service. People not only pay for more, they'll pay for less. Less irritations, less waiting, less inconveniences.
- "The Principle of Enlargement" - Do people like your service or product? Then it's a sure-fire bet there is a segment of your market that would like even more of it. Can you super-size something?
- "The Principle of Entertainment" - From cradle to grave, we all have this inner urge to be entertained, amused, or fascinated - especially before we spend our money. A relaxed customer spends more. Find little ways to amuse customers before, while, or after they buy your product or service.
- "The Principle of Longevity" - It's making some feature of your product or service last longer. It can also include making a positive experience or feeling last longer. If you can do either, you will have a niche that's hard to match.
- "The Principle of Portability" - People hate to be tied down. So, if your product allows people the freedom to use your product or service in more than one place, that's a powerful niche.
- "The Principle of Reduction" - If you sell a product or service, is there any way to reduce a certain feature to make it more convenient? More portable? Or easier to use? Can you reduce it and make it more affordable for another type of customer?
- "The Principle of Reversal" - Look at what features or services your competition is offering or not offering and reverse them. If they close on weekends, can you be open? If they cater to seniors, target more young people. Or if they cater to high-end customers, target more low-end volume customers etc.? The list is endless.
- "The Principle of Safety" - If you can show others how your product or service can add safety or reduce risk, you'd have a powerful niche. People hate to experience loss, feel insecure, or waste money. Try to think of little ways you can help people avoid the above with your product or service.
- "The Principle of Speed" - You should always be thinking, "What can I do faster than my competitors-without reducing quality?" Can you fill your orders faster? Can you give faster service? Can your product get faster results? Can you resolve customer issues faster? Think speed!
So, here you are today – you have to decide whether you want to provide a mediocre product or service with a lot of competition or something that is very special in the marketplace, something that no one else is providing focusing on an unmet need.
You don’t necessarily need a large market if you have a product/service that you can charge a premium for. In many instances, PERSONALIZED CUSTOMER SERVICE where your emphasis is on the individual customer, building on a one-one relationship along with delivery of your quality product is what makes the difference.
Do your homework:
Capabilities, Strengths, Knowledge, Experience, / Love, Passion / Demand, Profit.
Pick your niche and go for it!!