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.