Tip #6: The Ideal Niche Market

Question For Richelle : Based on your success, can you discuss how a startup business owner/entrepreneur determine how to establish a niche?
Richelle’s Answer – What is an ideal Niche Market? An ideal Niche market is a market that has these qualities:

1. Small enough for you to dominate – How will you reach the prospect? If you choose for example African American women. Well there are millions of them. How can you reach them through media? And if you have no money, you will not reach enough to make you any money

2. Big enough so that you can make money – Realize that you will only be able to penetrate and sell to about 20% of the market. If the market is only 1,000 – then that means you start with a capacity of 200 people that you can reach. YIKES – this is too small… An ideal niche market has at least 10,000 in it.

3. Is there available media to reach the prospect? Is there a magazine, television show, newspaper, a list to direct mail, radio, websites who are also selling to the prospect?

4. Does your niche have money to spend on your product or service?

5. Is your niche spending right now?

Run your business through this test to determine if you have a niche market. Good luck!