More on Niche Development
In this post I’m going to continue my discussion on developing niches.
As I mentioned in my last post, before going into a new niche you must try to confirm as closely as possible that the numbers will work for you. In general, you should satisfy yourself that you will have positive answers when you ask the following questions:
1. Are there enough qualified buyers in the group you are considering?
2. What would it cost you to make a sale? How much profit would be left over after the sale? Is that sufficient for you?
3. Is this a growing market or a shrinking market? You want to get into a growing market/niche.
4. Will you have a competitive advantage in this niche? Can you create one?
5. How hungry are prospects for solutions in this niche?
These are some preliminary questions you should answer before making a decision to pursue a niche. And here is a very personal question you should also ask, maybe even before the others I just posed: will you enjoy working with the people in that niche? Can you become their friend? If not, I suggest you go on to another niche where you can both enjoy the people you work with while making the money you want.