Finding a Niche Then Focus
by: Arman Rahman
If you are owning a large corporations with resources in the millions of dollars, it is possible to enter a market with a broad scope and aim to seize the market in its entirety. However, for a smaller enterprise, this may not be possible.
The best strategy for the smaller home business is to "divide and conquer" the demand into manageable market niches. A home business should then offer very specialized products and services to a specific group of potential customers. It is a matter of finding a need or want then satisfying it.
Of course, this is more easily said then done. Finding a niche market is not simple as it looks. One must have an "eye" to find opportunities in the most unlikely of places. If you study the thought patterns of great entrepreneurs and investors, they are always on the lookout for new opportunities. Once the opportunity is found, their creative juices goes into action transforming the opportunity into a vision of how the opportunity can be turned into a money making enterprise.
As an example, there is huge craze to purchase the latest, fanciest and most feature rich mobile phones. People regard a mobile phone as a personal device and will normally not think twice to purchase the best one. Most mobile service providers takes advantage of this craze to package their services with the mobile phone. As a result, the cost of mobile phone packaged with a mobile service plan goes down thus further motivating this buying craze.
However, not everyone are technologically savvy. There are people though in smaller numbers who do not really understand or need the latest mobile phone. They find the features on the new mobile phones confusing to use and worse turned off by them. This small number of people needs a mobile phone to make calls but do not need the other bells and whistles.
As a small business entrepreneur, it does not make sense to target the larger market of people who loves the latest mobile phone because the large corporations are already deeply entrenched in the market. Instead, the entrepreneur should leverage the niche market created by the large corporations which is the second group of people who do not need the latest mobile phones.
Recognising this niche market, there are companies who takes advantage of these two trends. The first trend are the people who are crazy about the latest mobile phones. These companies purchase the "old" mobile phones for cheap. These "old" mobile phones are then sold within the niche market - the people who feel that they do not need or who are turned off by the latest mobile phone but they still see the need to make calls while away from home.
It takes experience and education to identify and take advantage of the niche markets. One must still do the necessary "homework" like market research, identifying the competition and ensuring that your product and services have the right configuration and quality that will satisfy the niche market effectively. The desired attributes may vary from industry to industry and thus some degree of specialized knowledge in the industry would prove very useful in ensuring success.
Lastly, when planning to target a new niche market, make sure that the niche does not conflict with the overall business plan. For example, a small establishment who sells custom designed garments should not attempt to go into mass produced and inexpensive clothes, no matter how large the demands is.
Copyright © 2006, Arman Rahman
Founder
http://www.HomePassiveIncome.comAbout The Author
Arman Rahman is the founder of HomePassiveIncome.com - a site dedicated for both new and experienced Home Business Entrepreneurs. Arman Rahman has been in the Home Business and Internet Marketing field since 2001.
[email protected]
