Finding your niche

Most people find it difficult in  finding a particular market niche, so that's the major reason i came up with this topic today. First things first, let's examine how you can evaluate your niche opportunities.

Evaluating your niche opportunity :

Two of the most critical indices you can use are technical and market viability analysis, you need to ask and answer a simple question: Can your scheme be produced using the ideas and technologies available now? If it's not technically feasible presently, perhaps you could commision a research on how  to solve this problem.

Having found out that the scheme is technically viable, you should then go ahead and establish its market viability. In market viability, you want to determine whether you can turn a good profit from surveying this product or service. You know that a good way to elicit this information is to do a feasibility study/business plan, don't you? If the product is not economically viable, either in the short or long run, please set it aside.

 While at your feasibility study it's important that you gauge how high or low the barrier to new entrants is. If the barrier to new entrants is very low, then the business is not going to be profitable in the long run. We'll get back to this point in a moment.

You might wonder, even if the barrier to entry is high, won't large established corporations in that industry step in with their deep pockets and wipe you out?

Leaders in the old are always the last to embrace the new

The above is a valid observation but experience disproves it. If you study corporate history in the last 150 years, you'll agree that leaders in the old industry are always the last to embrace the new.

The railroad ownerrs in America ignored air travel to their peril. The same thing happened with American cinemas owners: they scorned emerging TV media.

In April 2007 then Microsoft CEO Steve Balmer proclaimed that "There's no chance that the iPhone is going to get any significant market share." Six years later we are in 2013 and the iPhone has captured 42 percent of U.S. smarthphone market share and 13.1 percent worldwide, making Apple the second most valuable company in the world.

Add Value

Let's return to the issue of barrier to entry in your new niche. Beyond start-up capital, how else can you increase the barrier for new entrants? By adding value.

Another important reason why you should tie your more valuable skills and competencies to your newly discovered niche is that you can earn a higher return on those commercial offerings that you've implanted more value.

Dear new convert to niche marketing, how do you want to proceed from here? I suggest that you (i) start researching something (ii) pay attention to your environment, and finally develop your new skills.

Keep your dreams alive.