A niche market gives you a captured market to begin selling your offer to. Niches have a tendency to behave like tribes, so once they’re sold on your story, they will continue to be your fans. The ideal niche is one that is unimportant to corporate conglomerates and has few competitors, has room for growth, and you have enough money to sustain the business.
Choose your audience by asking:
- Is the audience large enough for you to make a profit?
- Is the audience small enough for you to target?
- Can and will they pay?
Some tools you can use to determine market size:
- For Business-to-Business Markets, look for industry reports, industry-focused magazines and podcasts, and research papers
- For Business-to-Business-Consumer markets, talk to influencers, experts, podcast hosts
- Business-to-Consumer markets, look for sales or tax reports from relevant companies, figure out the structure of important players, recognise that less data is available in this B2C market because it has the most competition.