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A unique niche. How to find a free niche to start a business

Opening a business and expanding into new niches is never easy. In recent years, the desire to start a business among Russians has been increasingly waning. At the end of 2015, for example, only 2.2% of Russians seriously planned to start their own business. And in 2014, when the crisis had just begun, and existing businessmen began to actively sell off their businesses. According to Opora Rossii, 483.6 thousand companies have closed and only 417.5 thousand have opened.

And yet, a businessman is a diagnosis; accordingly, there will always be people who are truly “sick” with the matter. In 2016, interest in starting my own business resurfaced. The reason for this may be that it is becoming increasingly difficult to find decent pay in hiring.

Of course, opening a business from scratch or entering a new niche from an existing profile is a risky business that does not promise quick enrichment. Moreover, the number of niches for small and medium-sized businesses has recently been increasingly decreasing.

In December, Vice President of the Russian Chamber of Commerce and Industry Elena Dybova diagnosed Russian small businesses - almost all business niches were occupied by corporations. In her opinion, the niches of services and trade are occupied; production requires money and resources that have become less available since the beginning of the 2014 crisis.

Boris Titov, the Russian Presidential Commissioner for Entrepreneurs' Rights, says that it is still difficult for small businesses to get orders for government procurement, since, despite the fact, industry giants are trying to circumvent these norms. When everything starts working, small businesses should get a big piece of the social pie.

New business, old business – are there any unoccupied niches?

True, every cloud has a silver lining. A crisis is an opportunity to squeeze into the market with a solution to the problems that this crisis gives rise to. According to the authors of the portal for selling ready-made businesses “BiBoss”, new niches lie in the following areas:

1. Goods and services, allowing you to save. Discounters, second-hand stores, sites for selling and exchanging things, public catering places with inexpensive food, as well as anti-crisis services, such as financial advice, are becoming more popular.

Example. A company of young people, smart university graduates who were engaged in tutoring schoolchildren, united into a small company. The unique offer consisted, in essence, of the same tutoring - they prepared children for the Unified State Exam. But there was one difference - tutoring takes place not one on one with the student, but with a group of children. This suited the clients (parents), since the group size is still smaller than the class, and there are not 30 students per teacher, but 7-10. And the price turned out to be lower than individual training. The result of such group coaching is higher - the influence of the group has a positive effect.

2. Businesses based on innovation and technology. This is an area in which there is almost no crisis. This niche is difficult to enter, but it is insensitive to market fluctuations.

Example. Let's take a company that specializes in the development and production of innovative vacuum switching equipment, intelligent devices for automating networks and substations, etc. 25 years ago she created equipment with a unique operating principle. Despite the presence of competitors, it is their devices that are purchased throughout Russia. And the company itself is represented not only in Russia, but also has 22 representative offices abroad.

3. Consulting and training. As a business education, it does not require large investments. What you need is a lot of knowledge and experience. The demand for consulting is growing, as mistakes become more and more expensive, and competent people are needed who can protect against them. Another thing is that there are not so many truly literate people. So the stars are not left without work.

Example. The Moscow hotel market is very saturated, but the hotel industry, according to professionals, has not worked out. The reason is that it is not always clear to hoteliers that the competitive battle is won not by good, but by hospitable establishments. Company N is engaged in auditing, consulting and training in the hotel business. They chose to solve service problems in this area and do not rush into other industries. Previously, the owner of company N herself worked as a hotel manager, so she understands the pains of the industry.

4. Import substitution- Let us immediately make a reservation that despite the loud statements, the results of import substitution are still very modest. Official statistics do not say how many foreign components are in products produced at home and on what equipment they are made. The situation is better in agriculture. With all the reservations, now is the best time for the development of agricultural projects. Although it is too late to enter this business from scratch. But operating agribusinesses have every chance to re-profile and take those positions that were vacated by the departure of foreign products.

Example. For many years, the Mari company, with varying success, developed two areas: goat breeding and the production of goat milk products. The breakthrough occurred for several reasons, the company’s co-owner reflects: the business received government subsidies, food niches were freed up, and a competent management step was made - hiring an experienced marketer who developed new packaging and positioning, which allowed Mari products to compete in the largest retail chains with foreign goods.

5. Maintenance of Internet projects. The popularity of this area is due to the fact that retail trade has recently moved online. Quite complex online store sites require competent support. Therefore, now all those who are somehow involved in this activity are in demand: web studios, designers, advertising specialists and copywriters.

Example. Bots that respond to customer requests in Telegram and collect reviews are a good business assistant that saves on call centers. Company N was one of the first to decide to create such robots to order. The work is simple, but everything has its own nuances and often clients prefer not to do it themselves, but to outsource the creation of such a cunning “call center” to our heroes.

Business on maternity leave as a new support for SMEs

These tips apply to both those who are starting a business and those who are looking for new niches for their existing business. Looking for them is like reinventing the wheel. It seems that all bicycles have already been invented, but there are unique people who would like to buy a bicycle with square wheels or a tandem bicycle. We'll have to look for such unique people with their mini-problems, the solution of which will be greeted with applause!

For example, a federal company - a factory for the production of chocolate candies did not have a single chance to compete for high positions on the shelves in chain stores. Then they focused on the gift segment, and became the only confectioners who produce expensive gift chocolate. Part of the assortment is included in the network, the rest is sold via the Internet and its own retail, where people go to buy special gifts - personal and corporate. 75% of purchases are made by women.

The same niches remain even in declining industries such as publishing, for example. You won’t earn billions here, but it will definitely be enough for the founder and team to earn a good income.

New women's entrepreneurship is also called a separate trend. Mother-entrepreneurs are a new phenomenon in the Russian economy; they well understand their audience of clients related to children in one way or another, and experts believe that this niche has a great chance of development.

Franchising is also considered an undervalued business niche. , and companies that learn to scale their business wisely have a great chance of success.

Bottom line

There are almost no niches left for small businesses - the majority of positions in the market are occupied by corporations with enormous resources and a margin of safety. In addition, the mechanism for providing government contracts to small and medium-sized businesses is not working well yet. When starting a new start, it is important to analyze and understand what client needs are not being met by the corporation. And then there is every chance of success. There is no point in opening a grocery store next to Magnit. But opening a shop with fresh fish promises profit.
A crisis is a time for the emergence of new small niches related to the desire of both businesses and ordinary people to save money. This is where great opportunities lie for organizing a new business or launching new products.
Franchising is one of those niches that remains undervalued year after year. Interest in franchises is consistently high, but there are few truly good offers. Anyone who can offer a good franchise to the market will succeed.

The e-commerce market is quite young, which will allow us to find unoccupied niches and topics in the next few years, and with a fairly low entry threshold. Good growth is also facilitated by the active development of the market due to the expansion of Internet users, as well as the flow of offline buyers.

In our article we will tell you how to come up with an idea, how to analyze the relevance of the market, and also where to start searching for suppliers.

Let's start with general trends. We advise you to familiarize yourself with our latest Analytics of the online trading market in Russia. You can find a lot of data on the dynamics of product categories, which are growing and which are stagnating. But the most interesting and revealing graph is this one:

It shows the distribution of stores by topic, depending on the number of daily orders. Micro - up to 10 orders, Small - from 10 to 100 orders, Medium - from 100 to 1000 orders, Large - from 1000 orders per day.

From this graph we can see that some industries are already quite strongly consolidated and have clear major leaders (Books, Food, Office Supplies). And vice versa, in the Flowers, Gifts, Decorations, Building Materials, the share of large ones is practically absent due to the strong geographical location, and allows local small players to work in local and regional markets.
In any case, this graph should be considered only in the context of the growth and volume of a specific topic. For example, the share of large stores in the segment of clothing and shoes, computers, and mobile phones is large, partly because the number of transactions in the topics is large.

Niche selection tools

Now we have some vector in general, the next step is tools for selecting narrower niches, as well as specific product groups and positions:

1. Bestsellers on foreign platforms:

Almost all large Western sites have a HotDeal and Bestsellers section, where the most popular products are updated daily or weekly. Often, trends for some things appear there 2-6 months earlier than they reach Russia.

2. Dropshipper sites

www.dx.com
www.chinavasion.com
DHgate.com
en.osell.com

The good thing about the range of dropshipping sites is that they are ideal for online trading. With these products you will definitely not have problems with delivery, storage or high customer expectations.

3. Catalogs of Western online stores

You can also look at the catalogs of Western online stores that are on the websites of mail forwarders - these are companies that deliver parcels from Europe and the USA to Russia. Using this link, for example, you can find such a selection based on the popularity of http://shopotam.ru/shops stores from the USA among buyers from Russia, there are more than 5,000 stores in this selection, and there is also the possibility of selecting by topic.

Niche assessment

You can estimate demand using the wordstat.yandex.ru tool. An important step to understand the dynamics of demand in general, the presence of seasonal surges and related products.

An example of a growing trend: “buy a monopod”

An example of a trend fall: “buy a talking hamster”

Example of seasonal variations: "buy touch gloves

In order to evaluate only consumer interest, it is better to enter the words “price”, “buy”, “store”, “delivery”, this will filter out information traffic. Also, do not forget that all trendy, fashionable bursts quickly collapse and if you are looking for topics for a long-term project, then it is better to look at topics with constant and predictable demand.

Search for suppliers when choosing a niche

You can start searching for suppliers with search engines, but if you want to find a little-known manufacturer or an interesting product, we recommend two options

1.Wholesale platforms, supplier aggregators:

Optlist.ru
Supl.biz
comerando.ru
miix.org
agoraB2B.ru

The most interesting thing is that on some sites you can leave a request to find a supplier, this will allow you to receive an offer directly from distributors and wholesalers, which, you will agree, is nice.

2.Industry conferences

On the websites of expo venues, look for websites of interesting exhibitions, and on the websites of exhibitions, look at the exhibitors section. As a rule, you can always find an archive with a list of all companies that were present with stands, with contacts and small introductory notes. Therefore, you don’t even have to go to them; we present the three largest exhibition sites in Moscow to help you:

www.crocus-expo.ru
www.expocentr.ru
www.sokolniki.com

To search for exhibition centers in your city or region, you can also use exhibition calendars. for example: www.expocalendar.ru

So, let’s hope that our tips helped you start thinking about the product part of opening an online store and choosing the right niche.

Many specialists dream of moving from hired labor to their own business - opening their own business. Fortunately, modern technologies allow almost everyone to provide services or sell goods both offline and on the Internet. The question arises of choosing a niche for business.

What does the majority do first? - Looking for business ideas on the Internet.

This is a failed strategy. If you view starting your own business as a means of escaping reality (for example, the country has a difficult economic situation, or your specialty is not in demand in the labor market), your idea may fail.

When opening a business, it is important to develop in yourself 3 key qualities of an entrepreneur:

I. Be prepared to take risks.

An entrepreneur is, first of all, “a person operating under risk conditions.” All categories of the self-employed population, who can be called entrepreneurs: traders, farmers, artisans, are at risk in one way or another. They buy at a known price and sell at an unknown price in advance.

This is one of the first concepts of the concept of “entrepreneur” by the English economist Richard Cantillon.

Yes, this is a profession!

Just like the profession of a doctor, an artist or an engineer, it should be taken very seriously.

II. Be persistent. Perseverance makes you move forward despite setbacks. We wrote about 5 ways to persevere.

III. Be technologically advanced.

So, let's move on to the technology of choosing a niche.

Niche selection technology

Don't start with someone else's business idea.

And don’t start with your business idea, even if it seems brilliant and terribly promising to you.

Look at business through the eyes of the market.

After all, an entrepreneur is a profession aimed at satisfying the needs of clients and at the same time generating profit for oneself.

That is why key condition for success in building a business there will be choosing the right niche.

A niche for a business is a foundation, the reliability of which will support the entire further existence and development of the business.

What is a niche in business?

A niche is the difficulties, problems (“pains”) of potential clients that you, as an entrepreneur, need to solve.

When you open a new business, the first step is to carefully assess the market, its capacity, competitive environment and composition (conjuncture) - who sells what, how and for how much.

Often the arrogance of many entrepreneurs is expressed in the fact that they choose a niche, relying only on their own opinion and understanding of the market. Without any research.

But. If you do not conduct primary market analytics, then you are completely unprotected from risks.

As a result, after some time you will realize that the niche is not in demand.

Ask yourself and your companions 5 basic questions:

1. What do I like and what do I want to do?

You need to love your business, because over time: problems, difficulties or banal instability can get boring, and without love for your business, the business will collapse.

2. Will this business be interesting to me in 2-3 years?

A business needs to be built in the long term, unless it is initially intended as a one-time project. Understanding the long-term nature of your endeavors will give you strength for development.

3. Is my customer motivated by pain, urgency, or strong emotion to buy my product or service?

If in this niche you see a real, urgent need among clients who are only “sleeping and thinking” how to solve this issue, this is your niche.

4. Are customers looking for solutions?

Do potential clients have the desire to find a solution to their problem?

5. How many solution options does the market offer them? What are your competitors offering? How well do their proposals meet the client’s requirements?

All beginning businessmen usually face the same problems and mistakes.

6 main mistakes when choosing a niche:

1. Selected too “wide” niche - a large number of more professional competitors, competitors with an established brand, demand is almost equal to supply.

2. Selected too “narrow” niche - too few people are looking for solutions to this problem.

3. The project is launched without testing— when the decision is made for the client, without testing the product for demand.

4. A product has been selected that nobody needs— look “soberly” at what you want to sell.

6. Positioning not from the “pain” of clients, and starting from the product, and - this approach is found all the time.

Now let's check how much your idea of your niche is confirmed by the consumer mass.

Monitoring consumer opinion

Go to forums, surveys, conduct direct interviews on social networks or among your friends.

You must understand:

1. Is your offer interesting to the segment you are targeting;

2. What will be the main reason for contacting you (why clients will choose you);

3. What disadvantages do people point out to your idea?

It is also recommended to analyze key queries on http://wordstat.yandex.ru and calculate how many people actually turn to search engines with a query relevant to your offer. There, in the “Queries similar to...” block, you can find a useful hint for yourself.

For example, in the screenshot the output for the request “training courses”:

From the above example, we can conclude that people are actively interested in the subject of education, and we can assume that they are willing to pay for it. At the moment, this market in Ukraine is estimated at $500 million per year on average.

Once you decide on a niche, think about how to convey your unique selling proposition to consumers.

State your position

Your message should be clear, unambiguous and short. The simpler it is, the more likely it is that consumers will understand it correctly.

You just did a small, but very an important investment for your future business, - the time you spent reading this article will help you find the most interesting and in-demand area for business. And its development will bring you not only great pleasure, but also decent profit.

Save this mind map so you can return to it whenever necessary!

In the 21st century, the concept of “niche” has come into use. For those who have never attended a training by the company “Business Youth” or “Findicat”, we tell you that a niche represents the transfer of entrepreneurial activity from general to a narrow specialization, undeveloped by competitors, in order to extract maximum benefit using unique techniques.

For clarity, let's look at an example. There is a general area for the production of flour products. There are different types of bread (black, white, grain, loaves, rolls, donuts, waffles). You can’t bake everything at once; you need to choose a specialization, for example, before producing Belgian waffles. But many companies produce and sell Belgian waffles; you need to come up with a unique idea to differentiate yourself from other competitors. For example, selling Belgian waffles not only as a dessert, but also along with meat dishes and salad.

What is a niche in business?

A niche is an area of business limited in scale, where it allows an entrepreneur to demonstrate his competitive advantages, aimed at his target audience. The most successful niche is formed at the intersection of several segments of different business areas.

Characteristics of a successful niche:

The highest level of personalization of offers for the client, satisfying the needs and requests of the client using a set of complementary goods or services;
Little competition;
Small but stable and solvent market

But be careful, niches can be extremely unstable. Many people simply take advantage of the hype. The wave of popularity passes quickly, customer needs often change, so the company must have maximum agility and flexibility in production.

But there is good news, you don’t have to be in the same business all your life. You can try new and completely different things. Therefore, do not try to make predictions now whether your niche will be successful in 3-33 years.

How to find your niche in business?

How good for those who from birth wanted to become a doctor or teacher. You calmly go to university, then get a job, gain experience and then start saving for your own clinic or school. But what should those who graduated from Economics or Law Faculty in the most basic direction do? I worked for 2-3 years in different companies and at 25-30 I still don’t know what I want to become.

It is the proposal that is very important. I worked for 2-3 years in different companies and at 25-30 I still don’t know what I want to become. If you just graduated from university and haven’t studied anywhere, don’t rush to invest in the first business you come across, especially if you don’t understand how the market works, who your clients are, and which suppliers are the most reliable.

Below are seven simple rules for aspiring entrepreneurs that will make it easier for you to choose a niche for your business:

You are an expert in this field
The idea is easy to implement
One idea solves one problem and is explained in 10 words
Market knowledge, business contacts
Repeated sales to the same customers (regular customers – savings on advertising)
You will have fewer problems with a product that does not lose relevance and does not deteriorate (for example, information)
And the most important thing is the “Secret Ingredient”, this is what distinguishes you from your competitors, what you do better, faster, better or cheaper than others

Identification of free niches.

In modern realities, there is no point in reinventing the wheel and offering the market something for which it is not yet ready. Leave this niche to large corporations, let them come up with new technologies and invest in an advertising campaign. Focus on a product that is already in high demand, it is important that you can make money in your chosen niche while withstanding the competition.

To determine the degree to which a niche is occupied, you need to analyze potential customers and competitors. There are several proven methods:

Study the search results for queries you are interested in in Yandex and Google (wordstat)
Find 3-5 of your direct competitors, study their price list, compare it with yours, see what else you can offer without reducing the price. For example, free shipping or larger volume
Analyze the top results of companies, which of them can you compete with? If you can get at least part of the clients or narrow your niche to a more targeted one, then such a niche can be considered free

Checking the viability of a niche

Signs that you have chosen the right niche:

The market is in a growth phase
There is a clear unmet customer need
Low degree of product differentiation
Small number of manufacturers
The existing players in the market lack the competitive advantage that you have
Your competitors have a poorly developed product distribution system

Market niche testing methods:

In the B2C or B2B market:

Sales wave analysis (surveys in social networks and forums)
Modeling of purchases (opinion of friends and colleagues Yandex Wordstat and Google Adwords)
Test market (focus group)
Buyer participation in product development process
What disadvantages does the niche you have chosen have (are clients ready to put up with the shortcomings)

List of Niches. Top 100 current niches for business in 2018-2019.

Below is a list of niches, divided into categories for convenience:

Cloth

Online clothing store for plus size people
Small import of branded items
Wedding dress atelier
Production of custom ties and bow ties
Sewing workwear and uniforms
Manufacturing of orthopedic shoes
Holiday costume rental
Online swimwear store

House

Children

Kindergarten at home
Eco toys
Sewing New Year's costumes
Identical clothes for children and parents
Speed reading lessons
Acting club
Nanny helping with homework

Food and cooking

Delivery of healthy food for a week
Making waffles
Cooking master classes
Production of muesli and breakfast cereals
Production of fast food products
Freeze-dried fruits and berries
Fruit chips
Import of "sweets"
Low-calorie cakes to order
Personal chef

Organization of events and leisure

Organization of holidays for children
Photo booths and other event props
Musicians and artists for corporate events
Decoration of sites with fresh flowers
Wedding coordinator
Catering for small banquets
Photographer or videographer

Tourism

Assistance with obtaining visas
Thematic excursions
Mountain trekking
Walking religious tours
Excursions for foreigners by private car
Eco tourism
Country tourism

Auto

Creative stickers
Car reservation
Advice on buying a car
You tube car review channel
Tire replacement
Rare car repair
Rental of special equipment
On-site vehicle diagnostics
Repair of agricultural equipment and engines
Party bus
Mobile car wash

Services

Lawyer-consulate (drafting contracts)
Marketing consultant (market research to model customer behavior)
SMM manager (maintaining groups and pages on social networks)
Spanish tutor
Nanny for kids
Copywriter
Team building events
Office space design
Consultations with a child psychologist
Drawing or sculpting courses
Purchase of goods for repair
Preparation of tax documents

Women's

Courses for pregnant women
Caring for pregnant women and new mothers (cooking, cleaning, washing)
Mobile manicure and pedicure specialist
Astrologer
Mobile makeup artist or hairdresser
Wardrobe consultant
Erotic courses
Handmade jewelry
Handbag painting
Online store of secret gifts

Animals

Sport and health

Personal fitness trainer for seniors
Nutritionist for young mothers
Massage at home
Online store for sports nutrition and vitamins
Sports equipment rental
Children's gymnastics coach
Amateur hockey team coach

IT services

Website development using constructors
Refinement and configuration of existing sites
Development of mobile applications and games
Registration of Domains and Hosting
Writing scripts
Data parsing
Software Instructor

Choosing a niche for a business is an unexpected problem for both a new entrepreneur and people who are already doing business. Choosing a business niche directly affects success. If you have taken (are already going) the wrong path, then get ready to constantly overcome difficulties that will appear on the way again and again.

Therefore, approach the choice of a niche consciously: analyze, compare and understand the profitability. It's better than banging your head against the wall and trying to sell a product that no one needs.

Choosing a niche for business - misconceptions and myths

People create barriers for themselves in business. They come up with new products, want to be unique and try to cheat the system.

Some people succeed. But 99% of entrepreneurs with an “innovative” product quickly go out of business.

Less competition - more money!

A common misconception is that you should choose a niche where there is less competition. This is a fundamentally wrong approach. Just a high level of competition indicates that money is flowing in this direction.

Use logical thinking. Would hundreds of people bother with a business that doesn't make money? Obviously not.

This leads to the following misconception - the clients have already been taken away. It is not true. There are always clients.
Select a target audience from billions of people and work for it. The problem is not the number of clients, but the right offer and a well-developed product.

The business idea must be unique

Choosing a niche for a business depends on the uniqueness of the idea - absurd! Quality of service, in-demand product, quick response to market changes, well-structured marketing - these are the basics that will help in developing your business and making money.

Of course it's great if the idea is new. The catch is that it’s harder to promote new things. You essentially have to form a market and instill a culture of product consumption. This requires a lot of money. This point is worth considering.

Clients contacted our agency with new ideas and... 50,000 rubles for promotion. We refused them. Since the amount is small and people simply do not request such a product on the Internet.

If you have a new idea that has been tested on other people, then you should enter the market through the media, plus promotion budgets for at least 1 year in advance. Or find an investor who will make financial investments into the business for a share of the company.

I like the idea, so do others too

It’s great when a person is passionate about an idea and in love with a product. However, here lies the catch. A person believes in his product so much that he forgets about:

real demand;
margins and deal cycle;
calculating the break-even point;
taking into account market trends and analysis;
payback period for investments in the project;
analysis of competitors and target audience.

As a result, choosing the wrong niche for a business can lead to problems and cash gaps. The scary thing is that the entrepreneur blames himself for the lack of “entrepreneurial spirit”, for not being smart enough, etc.

Stress, despondency, business closure and... leaving for hired work begin. Although the only thing that had to be done was to calmly analyze the niche.

Make a list of at least 100 niches that you like and analyze each of them according to the following criteria:
demand;

marginality;

deal cycle;

complexity;

volume of investments for launch and payback period;

market trend;

the presence of successful businessmen who earn millions in this niche; how much, on a scale of 10, do you like the niche you are analyzing.

Pavel Ugryumov

Choosing a niche for business: obvious and non-obvious niches

Niches are divided into obvious and non-obvious. The former are attractive because they are a final and simple product.

The second ones are complex ones, which participate in the process of producing obvious ones. You can choose either type. Each has advantages and disadvantages.

Obvious niches

Obvious niches are business on the surrounding things that we see. Look around: furniture, cars, real estate, books and so on. These are final products that are in mass demand.

Advantages:

easy to understand and quickly understand the niche;
formed market;
easy to analyze;
a lot of requests.

Flaws:

there is a lot of competition, therefore a high barrier to entry into the market;
it is difficult to stand out among competitors;
high risks.

Non-obvious niches

Highly specialized areas of business that are involved in the process of creating the final product. These are components for equipment, chemical reagents, etc. That is, such products are not found in ordinary life.

It’s worth building a business in a non-obvious niche only if you are a master in this area. For example, you have a higher education as a biologist, worked in a relevant industry enterprise, and then decided to open a business in this area.

Another example is the services of a forester who provides services for allocating zones for deforestation in accordance with the legislation of the Russian Federation.

Working for hire, a person received 70,000 rubles a month. He quits because wages are not raised, but at the same time remains the best professional.

Opens a business and works with a former employer on a contract basis. In this case, the check is no longer calculated in thousands of rubles, but in millions.

Only a person who has reached the “master” level can advance and earn money in highly specialized niches.

If you try to become only an organizer, you will encounter staff turnover and will not be able to fully control the process of providing services.

Advantages of unobvious niches:

much less competition, while the demand for services is quite high;
low entry threshold;
minimal risks;
possibility of independent pricing.

Flaws:

You must be a specialist who has extensive experience;
you need to analyze the demand for a highly specialized niche very well;
At the beginning of your journey, it is quite difficult to earn money quickly and a lot.

You learned that there are obvious and unobvious niches, and got acquainted with their features. Which one should you choose? You decide. The main thing is to take into account the recommendations and do a niche analysis before investing money, time and effort in your chosen direction.

Choosing a niche for business: trending directions

They decided to put this type out separately. Trending niches are similar to the obvious ones, but have a number of features. Here the analysis of demand for the product plays a major role.

For example, goods from China are ideal products to sell, but only at a time when the demand trend for them is at its peak.

This type of niche needs to be entered immediately and done quickly. The goal is not to build a stable business, but to hit the jackpot and move into another trending niche.

Let's take GPS watches for example. At one time, they could earn millions of rubles in a short period of time.

Now the demand trend is steadily falling and if you want to enter this business, then in 90% of cases you will lose money or reach the break-even point.

But the trend for electric bicycles and scooters is growing (2018). You can easily enter this niche. The main obstacle will only be finding a reliable supplier who will not let you down.

Advantages:

the opportunity to earn quickly and a lot;
no deep knowledge of marketing required;
high demand at the peak of the trend.

Flaws:

business is not forever - as soon as the trend starts to fall, you should leave this direction;
risks - the supplier let you down, you didn’t manage to sell quickly, demand fell and you’re in trouble;
the business is not suitable “for the soul” - the main task is to buy quickly, sell quickly and get a margin;
you need to closely monitor trends, the slightest mistake and you are in the red.

Choosing a niche in business - algorithm and analysis tools

Choosing a niche for a business should begin with an analysis of demand (this does not apply to unique ideas). In the USSR, the model of supply superiority over demand worked. In simple terms - “take what they give.”

If you have studied modern economics, then you know that demand creates supply, and not vice versa! Trying to impose a product on the market is a path to bankruptcy.

1. Demand analysis

Demand is easy to analyze. To do this, you need to go to Yandex.Wordstat and enter the query you are interested in within the time limit.

To find out the demand for a purchase, add the word “buy” to the request. For example, “buy an electric scooter.” Don't forget to select the region in which you plan to sell goods or services.

Find out how to analyze demand in practice from the video in which our director Pavel Ugryumov will review the Yandex.Wordstat service.

2. Competitor analysis

Choosing a niche in business is impossible without analyzing competitors. Find out which players are present on the market, how much they earn, what promotion methods they use and what size budgets are allocated for promotion.

Imagine this situation: you decided to repeat the success of one project, but did not analyze a competitor who receives hundreds of thousands of dollars of investment from America for promotion.

And you have 50,000 rubles for launch. What will happen? With 100% probability you will fail, as you will not be able to even be at the level of your opponent.

If you analyze your competitors, you will understand whether it is possible to enter the market and whether it is worth doing.

Evaluate your competitors using the following algorithm:

product line - what they sell;
determine the best-selling product;
unique properties of the product;
determine the marketing strategy - what promotion/customer attraction tools are used;
find out touch points with the audience;
calculate the effectiveness of advertising channels;
check your competitors’ sales algorithm (yes, yes, we leave requests, call, buy);
determine sales channels;
check the chain of work with the client;
find out the availability of sales scripts;
determine the average bill, number of applications, sales and market coverage among the analyzed competitors.

Result of competitor analysis

Based on the data received, you will understand what the state of affairs is on the market and whether you can take a piece of the pie. Also, based on your competitor analysis, conduct a SWOT analysis, which will help you differentiate yourself from your competitors.

If you don’t want to bother and waste time analyzing competitors, then delegate this process to our agency. Just click the button below and submit your request:

Choosing a niche for a business depends on the target audience. Knowing your target audience will help you understand whether you can satisfy customer needs at the same level or better than your competitors.

Also, knowing and understanding customers will greatly simplify business promotion and development in the future. The target audience is the foundation of the project. Understanding the pains, fears, desires and needs of the audience will ensure a flow of clients.

If you want to learn more about the target audience, we recommend that you familiarize yourself with the course: "". To find out more, just click on the button below:

*Remember! Anyone who knows the target audience has no problems in sales!

4. Assess margins and deal cycle

The choice of a niche for a business is influenced by the product margin and the transaction cycle. These two factors are closely interrelated.

Product margin is the difference between the selling price and the cost price of the product. In simple terms - net profit from sales.

See how profitable the margin is in the chosen niche. The higher the net profit, the better. But there are nuances with the transaction cycle.

The transaction cycle is the time that passes from the moment of contact with the client until the receipt of income. As a rule, the higher the margin, the longer the cycle and vice versa.

For example, a grocery store has a transaction cycle of 60 seconds, but the margin is quite low. Another example is real estate. Here the margin is much higher, but the transaction time takes weeks or months.

Determine the margin-to-cycle ratio and choose the option that best suits you.

5. Determine what your soul is about.

After analyzing the niche using dry statistical data, you will get a dozen directions. When choosing, we advise you to focus on knowledge and love for the niche. If you start doing something that is profitable but not your favorite, then nothing productive will come of it.

Love business, love clients! Well, we wish you success, high checks and a lot of positive emotions!