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How to Choose a Niche Market

You’ve heard stories of successful entrepreneurs using drop shipping to build profitable, high-performing businesses. You believe you’ve got what it takes to do the same. After all, you know there are untapped markets out there just waiting for someone to come along and meet their needs. But how do you find them? How do you choose a niche market for your potential business?

This is an important question. In fact, it’s one of the first questions you should be asking when considering a start-up. Before you go through all the work of setting your business up – choosing a name, incorporating, etc. – you want to make sure that your market is niche enough to genuinely compete. As a small business, you can’t be all things to all people. And if you try, you’re bound for failure. Instead of attempting such an impossible feat, it’s best to choose one market that is small enough to compete in but popular enough to need what you’re selling.

How do you choose a niche market like that? Here are a handful of tips that you can use to help you find the perfect niche market for your business.

1. Google

Contrary to popular belief, Google isn’t just a search engine. It’s one of the most powerful research tools that a small business owner could ask for. To begin narrowing your niche market using Google, visit https://trends.google.com and enter a potential merchandise category in the search bar. Google Trends will immediately give you a plethora of resources to analyze your potential market.

Google trends

Though it only gives you Google search results, since Google is the search engine to use, it’s a great way to gauge interest in a market. As you scroll down, you’ll be able to see the number of searches people have made in Google for your term over the past fifteen years.  This will allow you to see patterns of interest over time. You’ll also get the opportunity to see interest by US region as well as search terms that are related to your topic.

By using this information, you can dive deeper into particular niches so that you can get to a point where you’re deep enough to minimize competition while popular enough to still get solid business.

2. Social Media

We all know that Social Media is one of the most powerful means of getting your message into the world. But that’s not all it can do for you. It also has the power to help you narrow your market in important ways.

You can use the Websta service to analyze Instagram search results. Not only can you find out what is trending, you can also see the hashtags and users which contain your potential market’s keywords. This will allow you to determine how much competition you have as well as how much of a market you might be able to tap into.

In addition to Instagram, Facebook can be a great source of information for potential niche markets. By searching for your keywords in the Facebook search bar, you’ll see the groups and pages that are devoted to the topic. The more groups – and the more people within those groups – that you come across, the larger your potential market. And the number of pages that are devoted to businesses in that market will give you a good idea of how much competition you’ll face. By taking both of these numbers into account, you can get a pretty good idea of whether you’d be able to compete as a start-up.

Starting a new business can be nerve-wracking. Fortunately, you don’t have to go into it blind. By doing your due diligence, and making use of research tools like Google Trends, Instagram, and Facebook, you can have much more confidence that there is indeed a niche market for your product – and few enough competitors that you can find genuine success.

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