When you’re in the mood to start a business and just don’t know where to start, it’s time to capitalize on your inner Max and Caroline (a la Two Broke Girls).
No, we’re not telling you to open a cupcake emporium (unless you’re great at it, of course!).
What we are saying is find your niche.
TL; DR: To find your niche, think of a money making idea and get it to the point. Then start by overlaying the value creation and your unique selling points. Tada! Think about a product or service that you are already buying and how you can use your skills to get paid for a similar product or service. Learn to focus on your moneymakers and stop worrying about the little details that mean nothing to your bottom line. If you follow a few simple steps, you will have an income generating niche in no time.
How To Find Your Niche: The Basics
We all know a person who seems to develop new business activity every few years. Whatever they get their hands on it just seems like the next best thing. Every single damn time. How the hell do you do this?
You cracked the code to unlock goods and services that people will pay for. It’s that simple, but let’s unpack this a little further. Ramit gives us A few simple steps to identify a niche::
Step 1: Finding the “What”
It’s a lot easier too Come up with an idea for making money than you think. In fact, you probably have a few ideas in mind right now. However, the problem for many is turning their minds into a small business.
How you do that?
You start with 3 to 5 items or services that you are already paying for. If you pay for it, someone else probably will too.
Step 2: Combine Step 1 with your current skills
Use your skills. If you get paid to do something, it might just work as a business idea. It could also be something that you do in your spare time or that you received prior training for.
Ask yourself: What skills do I have and how can they make me more money? Whether you have crazy carpentry skills or are known for your aesthetically pleasing talent in color picking, there is an opportunity to make money.
Step 3: harness your hidden talents
This is the part where you gather all your friends around the fire pit to drink marshmallows and ‘kumbaya’. They need to tell you about things that they think you are good at. Ramit says, look for things like, “They give really good relationship advice.” Take a look at our case study Here Cassie transforms her unique skills into a $ 75 an hour business idea.
It could also be a little more subtle. If you’re the person in the family who teaches everyone how to make their taxes or organize their garage, you might want to look up a few courses and monetize your skills.
Step 4: test profitability
The only way to secure a payday for yourself by marketing your skills is to test the odds that someone will pay you for your service.
Ramit calls this test the Payment security technology.
- Who is your ideal customer?
- Would you be able to pay?
- Would you have the willingness to pay?
You need to leverage your people skills and ask these questions to your target market.
For example, a high performing executive will have the willingness and ability to pay for a mobile tailor. On the other hand, a new graduate may have the willingness but not the ability. Making sure your idea is profitable is key to finding your niche.
Step 5: Understand Your Niche Demand Matrix
It’s not always possible to know where your particular product or service will end up before it’s actually hit the market, but a little research will go a long way.
Sometimes you even need to get it public before you know if your chosen audience has the ability and willingness to pay for it.
Ramit puts it that way. Your company falls into one of four quadrants of the demand matrix.
- High-quality: High price and few customers. Think luxury brands.
- Golden Goose: High prices and lots of potential customers in this category. Think of expensive equipment that is a must-have for millions of customers around the world.
- Mass market: Low prices and lots of customers. Millions of products and services fall into this category, such as everyday items and even food.
- Love work: Low prices and few customers. No! No! No! Get the hell out of dodge! You won’t make any money with it. If you’ve already started, stop.
Step 6: separate yourself from the competition
You already have an idea, but the idea is not what your customers will achieve. It is your unique selling proposition. This means added value that will convince your future customer base why they should use your product or service, and even better, why they should pay good money for it. Think of intuitive apps, personalized gift ideas, anything that makes your product or service burst. Here’s a hint: think of added value that makes you dizzy with excitement.
Know exactly who your market is and what you are offering that no one else is doing. Maybe you love pet care. There are plenty of other pet sitters out there. How can you stand out from others? Let your target market know that you are providing pet care with daily updates and pictures, details of observed behaviors, and CPR certification for animals. Your target market is getting smaller, but the price you can charge is higher.
Finding your niche really is easier than you think
As long as you don’t bother with small details like printing business cards and setting up the right font for your branding, you’re off to a good start. Don’t get us wrong, these things will matter at a later date. For now, focus on the moneymakers like Get your first three customers.
If you’re ready to find your niche and live a rich life, why not? Sign up for our earnable course? Whether you’re creating business ideas or wanting to scale existing ones, the course has over 42,000 paying customers as proof of its reach.
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