How do you decide which niche market you should target?
When you started your business, how did you decide which niche market to focus on? Are there any tricks to deciding on which niche market you should choose? How do you know if a market is TOO niche to yield profitable results?
Honestly, when my partner and I started our company we didn't have a clue about how to differentiate ourselves, and that resulted in inconsistent and overly ambitious messaging for our brand. That also affected the quality of projects and resources that we'd manage to acquire. After a few months though we were able to achieve a better understanding of what problems our clients faced, and market gaps that we had the potential to fill.
We ended up concentrating our efforts on that and turned it into our niche.
Your niche market choice depends on the type of business you're into. Here are a few tips:
1) Identify your business niche
2) Highlight the problems you can solve
3) Research about competition
4) Discover who will be interested in the solutions you are providing
5) Segment your market according to demographic and geographic umbrellas
Creating a buyer's persona might help you.
Depending on how you will maintain the account should be your first concern. Will you need to be on-site at any time? Then travel costs can be extensive. Will the time zone difference hamper your management of the account or response time?