Niche Business Franchises
By Madison Elise
What is a Niche Business?
"Put all your eggs in one basket and then watch that basket very carefully" - Is a popular
idiom that was refurbished and used by the popular investor Warren Buffet. It is hard for most
people to do this because of the risks involved. However, with focus and the urge to go beyond
the limits, anyone can do it without much risk.
If planning to start a niche business, you must be willing to concentrate "all your eggs"
in one basket. By using the term 'all your eggs', I refer to pulling all your resources together
to ensure that you run a successful business.
Niche Businesses as an Industry
A niche business is as a small segment of market that targets a particular group of people
with a specific interest, desire or passion. The aim of a niche business is to satisfy specific
needs, price range, demographics and production quality intended for that particular group
of people.
It is the complete opposite of a shopping mall where one can find all sorts of products
and services. With a niche business, a customer is definitely going to find specific or related
products and services. For instance, a beauty store can be considered a niche business because
it sells products or services related to beauty.
Niche businesses as an industry have managed to be more popular than other forms of businesses
because they provide exceptional opportunity for the owner to establish better relationship
with their customers, resulting in higher consumer loyalty and potentially long-term consumer.
Niche Products and Services
These are products and services that enable a niche business owner to satisfy his/her
chosen market where others cannot. To simplify this, niche products and services are things
that your targeted people would want to buy to answer their specific problem.
In some cases, niche products and services can be narrowed down into a micro-niche. For
instance, if you are a fashion business, you can break down your business to women's wear,
men's wear or children's wear. These are more detailed categories in the fashion business.
The same applies to service providers. If you are a hairdresser, you can also be a cosmetologist
or a barber. Micro-niche is a common term that you will come across several times as you continue
to learn more about niche marketing.
Tips on How to Find the Right Niche
The first step when planning a business is to determine a target group of people and
reasons they would buy from you. It seems a simple task, but you should be in a position to
understand the products or services you will be selling and to whom.
If you are not sure about what involves a niche business, then you should revisit your
business plan. The following are tips to help you identify what your business has to offer,
your target market, and how to build a niche from there.
Unique product or service: If you are going to start a niche business, you will need
a unique product or service because you want to be the only one selling that particular product
or service. You should come up with a product or service near the borders of unsatisfied needs.
For instance, you may want to concentrate on creating hand-made fabrics or outfits, which most
costume clothes stores or large retailers don't supply.
An already available niche: Niche markets are small markets with many players. Therefore,
when finding the right niche, remember to choose a niche that is already available before you
find yourself out of the game. For instance, if you are planning to start a pet-food related
business, you need to research carefully the size and competition of that market to find out
if there is room for a new business.
Choose wanted products or services: You may be having magnificent products or services,
but if no one wants to purchase them, all your efforts will be in vain. For instance, if no
one is selling any type of street food along your block, it does not mean it is a good idea
because of health-related risks involved.
Additionally, the niche market of people likely to enjoy street food is smaller around
your block compared to other places. This means that there must be significant demand for your
product or service for your business to be profitable.
No matter what product or service you want to sell, the most important thing is that
you satisfy your target market in order to make the business profitable. You can also choose
to go with franchising, which has more benefits than risks.
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