Find Your Niche in No Time

We all know that one person who seems to come up with new business ventures every couple of years. Whatever they put their hands on just seems to blow up into the next best thing. Every single dang time. How the hell do they do it? 

They’ve cracked the code of unlocking goods and services that people will pay for. It’s as simple as that, but let’s unpack that a little further. Ramit gives us a few simple steps to identify a niche: 

Step 1: Finding the “what” 

It’s a lot easier to come up with a money-making idea than you think. In fact, you probably have a few ideas mulling about in your head right now. The problem for many, however, is turning their thoughts into a small business. 

So how do you do it? 

You start with 3 to 5 items or services you already pay for. If you’re paying for it, it’s likely that someone else will too. 

Step 2: Combine Step 1 with your current skillset 

Use your skills. If you’re getting paid to do something, it might just work as a business idea. It might also be something you’re doing in your free time or received training for before. 

Ask yourself this: What skills do I have and how can they make me more money? Whether you have mad carpentry skills or you’re known for your aesthetically pleasing knack for paint selection, there’s an opportunity to monetize. 

Step 3: Harness your hidden talents 

This is the part where you gather all your friends around the fire pit for some marshmallows and ‘Kumbaya.’ They need to tell you about things they think you’re good at. Ramit says look for things like “You give really good relationship advice.” 

It might also be a little more subtle than that. If you’re the person in the family that teaches everyone how to do their taxes or organize their garage, you might want to look up a few courses and monetize your skills. 

Step 4: Test for profitability

The only way you’re going to guarantee yourself a payday by marketing your skill set is by testing the odds that someone will pay you for your service. 

Ramit calls this test the Pay Certainty Technique. 

• Who is your ideal customer? 
• Would they have the ability to pay? 
• Would they have the willingness to pay? 

You’ll need to harness your people skills and ask your target market those questions.

For instance, a high-powered executive will have the willingness and ability to pay for a mobile tailor. A recent graduate, on the other hand, might have the willingness but not the ability. Making sure your idea is profitable is the key to find your niche. 

Step 5: Understand your niche’s Demand Matrix 

It’s not always possible to know where your particular product or service will land before you’ve actually entered the market, but a little research will go a long way. 

Sometimes, you might even have to put it out there before you know whether your chosen target audience has the ability and willingness to pay for it. 

Ramit puts it this way. Your business will fall into one of four quadrants on the Demand Matrix.

• High-End: High price and few customers. Think luxury brands. 
• Golden Goose: High prices and lots of potential customers in this category. Think expensive gadgets that are must-haves to millions of customers across the globe. 
• Mass Market: Low prices and lots of customers. Millions of products and services fall within this category such as everyday items and even groceries. 
• Labor of Love: Low prices and few customers. No! No! No! Get the heck outta Dodge! You will not make money with this. If you’ve already started, stop.

Step 6: Separate yourself from the competition 

You already have an idea, but the idea is not what’s going to get you customers. It’s your unique selling point. This means value adds that will convince your future customer base why they should use your product or service, and better yet, why they should pay good money for it. Think intuitive apps, personalized gifting ideas, heck, anything that will make your product or service pop. Here’s a hint: think of value adds that will get you giddy with excitement. 

Get super specific about who your market is and what you offer that no one else does. Perhaps you love pet sitting. There are many other pet sitters out there, so how do you set yourself apart? Tell your target market that you provide pet sitting with daily updates and pictures, details on noted behaviors, and that you’re certified in animal CPR. Your target market will get smaller, but the price you can charge is higher.