Once you’ve identified a potential niche market, how do you know if it’s a good niche market for you?
Here are four questions to ask:
1. What needs, concerns, and challenges do members of this niche have? Are these needs, concerns, and challenges the same for all members of the niche? And how well-positioned are you to help them?
Let’s break that down a bit:
- Needs are things they must have or do.
- Concerns are their common worries or doubts.
- Challenges are real or perceived obstacles hindering their success.
For example, parents of special needs children are often concerned about what will happen to their child after they die. They need to make sure that the child remains qualified for government aid. And they feel challenged by not having the time or expertise to set everything up properly.
2. How much affinity do you have with the members of the niche? Do you have (or can you develop) a genuine connection with them? Are you a current or former member of the niche?
Even if you aren’t directly affiliated with the niche, you may have a heart or mindset for working with that niche. For example, if you have a knack for details, you may find that you really enjoy working with engineers or computer scientists.
3. What would it take for you to find and connect with them? Do you have a way to reach them? Do they interact with each other?
In other words, how is word likely to spread about how you can help?
4. What is the opportunity? Can you build a successful practice by focusing on this niche?
Opportunity is a function of:
- How many people are in the niche?
- Do the members of the niche have sufficient means to pay you?
Different advisors will have different answers to each of these questions. By answering each of them carefully and completely, you’ll know if this niche is your niche.
Ready to learn more? Check out our new mini-course: Own Your Niche Market at www.pathfinderondemand.com. (Did I mention that it’s free?!)