Thursday, July 14, 2011

How To Find A Niche Market

When people are looking for opportunities to start their home based businesses, they usually miss the boat. Where they fall short is their broad, open-ended approach to picking a product or service to sell or promote on the web. Because we have access to so many tools online, there is absolutely no excuse to launch a website or start a business without having done proper research. The tools available to marketers and small businesses include keyword list generators, reverse search tools, and even a few that allow us to assess how much competition we will have upon launching our websites. With all of these pieces in place, we have little or no excuse for picking a bad niche.

If you were going into battle, would you pick an enemy that was 1 million troops strong, or would you rather fight a group of strays who are few in number and less ready for combat? The same question can be asked when you are going to compete in a given niche or marketplace on the web. I know there is a lot of competition for home and gardening wares, and that there would be seemingly limitless competition here, so I would want to consider niches like composting or even pruning equipment. Competing with the bigs like Home Depot, Lowes, et al would be a bad move in this situation. When you choose a smaller target like composting equipment, you make it easier to do well in search because you have fewer customer types. Considering your competition is as important as determining how much demand there is for that product. I have fought tooth and nail with clients who have wanted to sell or promote things that based on Google (and let's face it, who else would you need to base it on?) do not exist and have no market. Don't market to non-existent customers. Simply put, there are factors such as supply, demand, and competition that need to be a huge part of the conversation when picking a market niche for your home based business ideas.