If you are considering entering a new niche sector, these are the three things I would consider before testing the concept.
1. Market Resilience
While no sector is entirely immune to economic downturns, some will be more resilient than others.
- Does it have a steady demand?
- A diverse client base?
- Is it an essential service?
- What are the opportunities for diversification within that niche?
Understanding these things can help mitigate risk.
2. What does your Value Proposition look like?
Niching allows you to develop a specialised value proposition tailored to the unique needs and pain points of clients within that sector.
- How does your proposition stack up in this sector?
- Do you fully understand the potential clients’ problems?
- Is your solution truly unique?
- What are the benefits your solution delivers?
- What proof do you have to back this up?
A deep understanding of the industry enables you to offer solutions that are perceived as essential, even in challenging times.
3. How will you build Long-Term Relationships?
Building long-term relationships with clients within a niche can provide a reliable source of recurring revenue, even when new business acquisition is slow.
- Where do your potential clients hang out?
- How can you be part of that world?
- What will you bring to their community?
- How will you help them?
On average it takes 18+months to establish yourself in a sector niche, what time will you as a founder dedicate to this? You’ve got to love the niche you choose, because you’ll need to live and breathe it.
Book a call with me if you need help defining your niche.