Bill Stacy
31st January 2009, 03:54 PM
Your $300,000 a year business plan, Part Four: Finding the right niche market
Where to look and how to find the perfect niche market of customers for your business
This is the fourth article in our series of articles on Your $300,000 a year business plan.
In Your $300,000 a year business plan: Part One we covered the basic math behind reaching $300,000 a year.
In the Part Two, we looked at strategies for developing the right product mix, and the theory of product escalation.
In the Part Three, we reviewed specific examples of products and prices you might want to consider for your business.
In this article, we'll look at how to research and choose a customer base within a niche market, which can lead you to the $300,000 a year revenue level.
Start by understanding the goal
When it comes to searching for the right niche market, it is best to start your search understanding your goal.
In almost every case, your goal is to find qualified customers within a sub niche topic of interest totally ignored by the mainstream media and product providers. Basically you are looking for a small, highly qualified market where the customers are 'starved for products'.
As pointed out in the earlier articles of this series, you really don't need (or want) hundreds of thousands of customers. All you need is a few thousand customers, each spending about $100 a year with you . . . or 1,000 customers spending $30 a month with you.
Keep in mind your goal is not to find a market with millions of customers. Markets that size will be well saturated with product offerings from businesses large and small - meaning lots of seasoned competition.
Your goal is to find an underserved market filled with qualified customers starved for the kinds of products you offer.
Qualified customers
So, what do I mean by 'qualified customers"?
Basically, it's customers who:
- Have the ability to spend money (i.e. they have credit cards)
- Have the desire to spend money on the kinds of products you offer
- Have a history of spending money on the kinds of products you offer
- Use the internet to find the kinds of products you offer
- Will continue to purchase products within the same niche
- If you can find customers with the above qualifications in a niche market where there is little or no competition, and if you can offer those customers the kinds of products they want, you will do well.
Frankly, most entrepreneurs don't do this. They do the exact opposite.
Instead of first finding qualified customers in a noncompetitive market, and then offering those customers the products they really want, most would-be entrepreneurs offer the same tired old products being sold by everyone else, to weary customers in highly competitive markets already saturated with products.
And when they fail, they figure the problem must be in marketing (rather than in customer and product selection).
You can avoid that problem by finding the right customers first, and then coming up with the right products.
Searching for niche markets
So how do you find a niche market filled with qualified customers but ignored by the mainstream media and loads of competitors?
Start by looking at your own hobbies and interests, as well as the hobbies and interests of people close to you.
For example, recently I was visited by my brother, Tom. He was in Florida for a 5 day training workshop - one that he had paid $6,500 to attend.
Tom had just spent $675,000 for an item he found on the internet, and before he could legally use that product in his business, he had to first take and pass a 5 day training course.
This wasn't the first time Tom had invested serious money in this particular interest. Since was 12 years old, he has been investing money in toys, books, magazines, newsletters, training workshops, equipment, gear, and clothing related to this special niche interest.
All told, he has spent well over $1 million within this one niche (and sub niches) and will probably spend another million within this same niche over the next 5 years.
And he is not alone in this niche. There are thousands of people in this niche market that regularly spend $100,000+ a year for items, information, training, and gear in this niche.
As you have probably guessed, this particular niche is private aircraft owners, private pilots, and those who want to become private pilots. This niche, (and many sub niches within it) is filled with more than enough qualified customers for you to achieve the $300,000 a year revenue.
I'm not saying you should target this niche - just pointing out a niche that exists with plenty of qualified customers - some of who are not finding the kind of information they want to spend money on.
Searching for niches, sub niches and product ideas
So let's say you are interested in the private aircraft owner market. How do you go about finding sub niches within this market?
Before we start, let me say that if you have no interest (or burning passion) in being a private aircraft owner, this wouldn't be the niche for you. But don't worry - there are thousands of other niches that might be perfect.
But if you were interested in the personal aircraft owner niche, you could quickly see a list of potential sub niches by reviewing the existing magazines that target this niche. One place you could find this list would be by searching the Oxbridge directory of publications online.
You can do a free search, and find publications that reach particular markets. To see the kinds of results these searches can bring, check out Media Finder Magazines and Publications
When you do a search like this, you'll see names of magazines that will give you clues to what kinds of sub niches already exist within a topic, and those sub niches might spawn a few ideas for products.
For example, the photo above, and the one below appeared in a recent issue of Pilot Getaways magazine - a magazine for private pilots which features interesting places to fly into. (Both photos are of my brother Tom flying around Hot Springs, Arkansas).
Who would have thought that there would be a large enough niche market to support Pilot Getaways magazine? But there is. And that suggests there might be an equally large market for people who wish to see videos or DVDs from a pilots point of view, perhaps of the kind of destinations covered in the magazine.
What if you produced a DVD for each of the top 20 private flight destinations in the US, showing what to expect, how to get there, where to stay, etc. - specifically from a pilot's point of view. If you offered these DVDs individually, and sold just a few each day, you definitely should be able to reach the $300,000 a year income goal!
How about doing the same thing for other markets? Maybe something targeting those dreaming of navigating the Atlantic Intracoastal waterway? Produce a library of videos about boating on the intracoastal and offer these to boaters (and dreamers). (Never heard of the Atlantic Intracoastal waterway? Check out http://reference.allrefer.com/encyclopedia/I/Intracoa.html).
Finding more niche markets
What about other niche markets? How do you find them?
In my experience, the best ways to discover niche markets are:
- Look within your own hobbies and interests
- Listen as others describer their hobbies and interests
- Visit the magazine sections of large book stores
- Look in the classified ads of large magazines, for newsletters covering sub niches
Attend local and regional hobby, collectible, and related trade shows
Review the thousands of sub categories at eBay
Look at specific high prices products and models within product lines that might present their own sub niche (i.e. Cessna owner magazine).
As you conduct your search, remember your goal. To find a sub niche of qualified customers who can spend an average of $100 per year with you on your products.
Find a market where you can sell a series of related products (videos, dvds, software, workshops, reference material) to customers in that market for a extended period of time.
Again, keep in mind that you don't need a large market, just a qualified market of people willing, ready and able to spend money on products that cover their area of interest.
When searching for these markets, concentrate on:
- Dream fulfillment
- Niche businesses
- Niche products
- Niche lifestyles
- Above average income pursuits
- Avoid markets where:
- Lots of free information available in mainstream media
- Lots of products available for the niche market in mainstream stores
- Lots of entrepreneurs already targeting the market
- Customers have little money to spare
- Customers trying to fill one need
To help expand your thinking about possible markets, go to a local newsstand and get a copy of Robb Report - the magazine for luxury lifestyle, and check out the ads throughout the magazine - especially the small display ads in the back.
And while you are at the magazine store, check out how many magazines cover the niches and sub niches of boating, flying, writing, painting, travel, and various other pursuits. And avoid all the business and money-making magazines!
And to really see how many sub niche markets exist, get a copy of 2009 Writer's Market - which lists over 2,300 unique publications covering niche markets (publications with titles like Miniature Donkey Talk, Shaman's Drum, Tattoo Revue, Sticky Buns, and Muzzle Blasts).
It's worth the effort
Finding the perfect niche market that suits your personal interests will probably take more than just a few days of research. It will require you to get out and expand your horizons by seeing things not immediately apparent to you and others around you.
It most likely will take you months before you really find the exact market you want to be in.
Most people are too impatient to conduct this type of research. Instead they jump into a highly saturated market filled with competitors.
But for those persistent few who take the time to find the right market, it will be much easier to reach their $300,000 a year income goals -- while being involved in something they enjoy.
************************************************
For more articles like this one visit <a href="http://www.bmyers.com/index.cfm?affID=1daywealth">Bill Myers Online</a>
Where to look and how to find the perfect niche market of customers for your business
This is the fourth article in our series of articles on Your $300,000 a year business plan.
In Your $300,000 a year business plan: Part One we covered the basic math behind reaching $300,000 a year.
In the Part Two, we looked at strategies for developing the right product mix, and the theory of product escalation.
In the Part Three, we reviewed specific examples of products and prices you might want to consider for your business.
In this article, we'll look at how to research and choose a customer base within a niche market, which can lead you to the $300,000 a year revenue level.
Start by understanding the goal
When it comes to searching for the right niche market, it is best to start your search understanding your goal.
In almost every case, your goal is to find qualified customers within a sub niche topic of interest totally ignored by the mainstream media and product providers. Basically you are looking for a small, highly qualified market where the customers are 'starved for products'.
As pointed out in the earlier articles of this series, you really don't need (or want) hundreds of thousands of customers. All you need is a few thousand customers, each spending about $100 a year with you . . . or 1,000 customers spending $30 a month with you.
Keep in mind your goal is not to find a market with millions of customers. Markets that size will be well saturated with product offerings from businesses large and small - meaning lots of seasoned competition.
Your goal is to find an underserved market filled with qualified customers starved for the kinds of products you offer.
Qualified customers
So, what do I mean by 'qualified customers"?
Basically, it's customers who:
- Have the ability to spend money (i.e. they have credit cards)
- Have the desire to spend money on the kinds of products you offer
- Have a history of spending money on the kinds of products you offer
- Use the internet to find the kinds of products you offer
- Will continue to purchase products within the same niche
- If you can find customers with the above qualifications in a niche market where there is little or no competition, and if you can offer those customers the kinds of products they want, you will do well.
Frankly, most entrepreneurs don't do this. They do the exact opposite.
Instead of first finding qualified customers in a noncompetitive market, and then offering those customers the products they really want, most would-be entrepreneurs offer the same tired old products being sold by everyone else, to weary customers in highly competitive markets already saturated with products.
And when they fail, they figure the problem must be in marketing (rather than in customer and product selection).
You can avoid that problem by finding the right customers first, and then coming up with the right products.
Searching for niche markets
So how do you find a niche market filled with qualified customers but ignored by the mainstream media and loads of competitors?
Start by looking at your own hobbies and interests, as well as the hobbies and interests of people close to you.
For example, recently I was visited by my brother, Tom. He was in Florida for a 5 day training workshop - one that he had paid $6,500 to attend.
Tom had just spent $675,000 for an item he found on the internet, and before he could legally use that product in his business, he had to first take and pass a 5 day training course.
This wasn't the first time Tom had invested serious money in this particular interest. Since was 12 years old, he has been investing money in toys, books, magazines, newsletters, training workshops, equipment, gear, and clothing related to this special niche interest.
All told, he has spent well over $1 million within this one niche (and sub niches) and will probably spend another million within this same niche over the next 5 years.
And he is not alone in this niche. There are thousands of people in this niche market that regularly spend $100,000+ a year for items, information, training, and gear in this niche.
As you have probably guessed, this particular niche is private aircraft owners, private pilots, and those who want to become private pilots. This niche, (and many sub niches within it) is filled with more than enough qualified customers for you to achieve the $300,000 a year revenue.
I'm not saying you should target this niche - just pointing out a niche that exists with plenty of qualified customers - some of who are not finding the kind of information they want to spend money on.
Searching for niches, sub niches and product ideas
So let's say you are interested in the private aircraft owner market. How do you go about finding sub niches within this market?
Before we start, let me say that if you have no interest (or burning passion) in being a private aircraft owner, this wouldn't be the niche for you. But don't worry - there are thousands of other niches that might be perfect.
But if you were interested in the personal aircraft owner niche, you could quickly see a list of potential sub niches by reviewing the existing magazines that target this niche. One place you could find this list would be by searching the Oxbridge directory of publications online.
You can do a free search, and find publications that reach particular markets. To see the kinds of results these searches can bring, check out Media Finder Magazines and Publications
When you do a search like this, you'll see names of magazines that will give you clues to what kinds of sub niches already exist within a topic, and those sub niches might spawn a few ideas for products.
For example, the photo above, and the one below appeared in a recent issue of Pilot Getaways magazine - a magazine for private pilots which features interesting places to fly into. (Both photos are of my brother Tom flying around Hot Springs, Arkansas).
Who would have thought that there would be a large enough niche market to support Pilot Getaways magazine? But there is. And that suggests there might be an equally large market for people who wish to see videos or DVDs from a pilots point of view, perhaps of the kind of destinations covered in the magazine.
What if you produced a DVD for each of the top 20 private flight destinations in the US, showing what to expect, how to get there, where to stay, etc. - specifically from a pilot's point of view. If you offered these DVDs individually, and sold just a few each day, you definitely should be able to reach the $300,000 a year income goal!
How about doing the same thing for other markets? Maybe something targeting those dreaming of navigating the Atlantic Intracoastal waterway? Produce a library of videos about boating on the intracoastal and offer these to boaters (and dreamers). (Never heard of the Atlantic Intracoastal waterway? Check out http://reference.allrefer.com/encyclopedia/I/Intracoa.html).
Finding more niche markets
What about other niche markets? How do you find them?
In my experience, the best ways to discover niche markets are:
- Look within your own hobbies and interests
- Listen as others describer their hobbies and interests
- Visit the magazine sections of large book stores
- Look in the classified ads of large magazines, for newsletters covering sub niches
Attend local and regional hobby, collectible, and related trade shows
Review the thousands of sub categories at eBay
Look at specific high prices products and models within product lines that might present their own sub niche (i.e. Cessna owner magazine).
As you conduct your search, remember your goal. To find a sub niche of qualified customers who can spend an average of $100 per year with you on your products.
Find a market where you can sell a series of related products (videos, dvds, software, workshops, reference material) to customers in that market for a extended period of time.
Again, keep in mind that you don't need a large market, just a qualified market of people willing, ready and able to spend money on products that cover their area of interest.
When searching for these markets, concentrate on:
- Dream fulfillment
- Niche businesses
- Niche products
- Niche lifestyles
- Above average income pursuits
- Avoid markets where:
- Lots of free information available in mainstream media
- Lots of products available for the niche market in mainstream stores
- Lots of entrepreneurs already targeting the market
- Customers have little money to spare
- Customers trying to fill one need
To help expand your thinking about possible markets, go to a local newsstand and get a copy of Robb Report - the magazine for luxury lifestyle, and check out the ads throughout the magazine - especially the small display ads in the back.
And while you are at the magazine store, check out how many magazines cover the niches and sub niches of boating, flying, writing, painting, travel, and various other pursuits. And avoid all the business and money-making magazines!
And to really see how many sub niche markets exist, get a copy of 2009 Writer's Market - which lists over 2,300 unique publications covering niche markets (publications with titles like Miniature Donkey Talk, Shaman's Drum, Tattoo Revue, Sticky Buns, and Muzzle Blasts).
It's worth the effort
Finding the perfect niche market that suits your personal interests will probably take more than just a few days of research. It will require you to get out and expand your horizons by seeing things not immediately apparent to you and others around you.
It most likely will take you months before you really find the exact market you want to be in.
Most people are too impatient to conduct this type of research. Instead they jump into a highly saturated market filled with competitors.
But for those persistent few who take the time to find the right market, it will be much easier to reach their $300,000 a year income goals -- while being involved in something they enjoy.
************************************************
For more articles like this one visit <a href="http://www.bmyers.com/index.cfm?affID=1daywealth">Bill Myers Online</a>