Why finding a Niche is the key to small business Success?

So you want to start the online storefront but aren't sure where to start from. Or maybe you already have running an e-commerce storefront but have feeling that something is just off with your storefront. Sometimes it is impossible to stand out in an industry with other competitors and business.

If you want to differentiate your brand in a crowded market then finding the right people and finding a niche is the right option.

According to research around 534,000 new businesses starts every month¹, so it’s obvious that the competition in the market is so high so the businesses who think to do something different and choose their niche carefully give tough competition in the market.

64% of small business owners begin with only $10,000 in capital and 40% of small businesses are profitable because they work on their business strategy and create their success path¹.**

According to recent data, there are 32.5 million small businesses in the United States alone. These small businesses and individuals startups are often inspired to “think big” to avoid restriction and find success.

There are thousands of businesses already and also the competition is high and all the businesses are thinking big and competing for the same market, customer and the same business model as you.

But if you do the same thing as the other business do your chances of success can be dramatically decreased.

And if you are a small business you can't compete with everyone and can't do everything as the other business do.

And that's why finding a niche is so crucial for your small business

If you search online now, you can find hundreds of products that are being custom printed on demand for a niche markets. Some of the popular categories and examples are as below:

Outdoor home decor: Outdoor wall art for decks, patios, and porches. Garage door and garage wall murals. Tool chest and ice chest wraps. Decorative privacy screens for patios and gazebos. Permanent pool and patio signs. Garden flags. Door banners and yard signs for parties and holidays. Birdhouse wraps. Mailbox covers. Patio umbrellas. Mini-fridge wraps.

Travel gear: Luggage tags and covers. Tote bags. Beach towels. Beach umbrellas. Phone chargers. Passport cases. Laptop and tablet sleeves, T-shirt printing, Mug Printing, and many more.

Just study what other online retailers are selling, determine what your small or medium print shop do differently in the market, can you pursue a narrower segment of the market?

To recap, you should select a niche for your business because:

1. High volume of competition in the market and it is hard to stand out with
   the limited resources

2. Specific product and specialize in the business or interest makes it
   easier to describe what your business does.

3. The main advantage of targeting a niche is, most of the customers who are
   searching for your product or services online are almost ready to buy your
   product.

Now that we have covered the why, let’s move on to the how.

Choosing a Niche: Product, Location, Price and more

Your niche can be based on many things that narrow down the interests of your targeted customers. And it could be:

• The Areas you operate your business or sell to (local, national,
  specific countries…)

• Target Audience or Customers (specific ages, interests…)

• The main advantage of targeting a niche is, most of the customers who are
  searching for your product or services online are almost ready to buy your
  product.

• Pricing of your goods (designer, affordable, budget-friendly…)

• Your business Model or your product selling/pricing structure (via subscription, with
  a membership option…)

So, think about a small business owner who wanted to sell Printed T-shirts online. In a saturated market, they might find their niche — and stand out — by:

• Selling only to the “Female teenagers aged 18-24 who are fitness and Yoga lovers and followers”

• Selling only to the “Male teenagers aged 14-20 who love avenger Movies and Comics”

• Having a niche gives the clear picture of your market

• Identify your target by what they are wearing, what kind of music they are listening, what kind of movies they follow, where they hangout, and most important… what things they are willingly to pay for.

• Start defining the niche before creating your T-shirt designs, that way you have a targeted audience and you are very clear about whom you are making t-shirts for. Market research is the important step for every business.

So to first choose a niche, think about the points mention above — area, audience, price point, and delivery method — plus the products themselves that you’re curious about selling.

Evaluate your niche Ideas and then Test your market.

Wrapping Up

If you are small business and still not engage with the niche market, it might be the time to explore this strategy to connect with smaller but more loyal and subset of customers. Develop the niche market strategy for your business to and try to understand the valuable customer segment you can focus.

Finding a niche market doesn’t mean that niche will be popular and profitable forever. You must be able to adapt and change with the market.

At OnPrintShop we have developed solutions to engage specific niche segments. Get a free demo to help you set up niche and online order management.