Building Your Forever Business – Step 11: Finding My Niche
In Step 10, we looked at how Heroes find their rhythm to work through their actions and habits consistently. By doing things repeatedly, they create a pattern of excellence that becomes difficult to break. By doing simple easy productive actions repeated consistently over time. It’s about doing ‘real work’ that achieves goals that brings you step by step closer to your Ultimate Goal and Desired Future. Moving along the Happy Path towards the desired future needs to a rhythm. Putting yourself in the groove, the flow. In this step we’ll shift focus towards looking at what forever business you’ll start by identifying how to find your niche.
For those just joining us at this point, you can continue and learn about the ultradian rhythm, but it’s worth starting at step 1, My Current State, to give you better context. And its the starting point of this adventure.
Let’s get started. In our Happy Path Flight Plan illustration, we are touching on Niche, now in orange and bold below.
Introduction
This step discusses the selection of a niche for your business, side hustle or if you are just testing the waters of entrepreneurship. If you have already firmly chosen your niche, then you are one of the lucky few who has made this tough decision. It’s still work reading this step if you have. For those still scratching their head trying figure this out then let’s get started.
You are going to need three niche ideas from this step before moving onto the next step called Opportunity Knocks. Opportunity Knocks reveals a methodology where we explore niche ideas to see which one best suits you. The good news is I have already chosen one potential niche for you. That is being a specialist in online digital media of your choice that can be decided at the end of you completing all these training steps. It should be obvious that you too can ‘be like me’ and do what I do for your own clients. This will be explained in later steps.
First you need to explore other avenues that are aligned to your interests, affinities, passions, skills, and purpose. Your purpose is focused. If it isn’t then start by going to Step 3: Purpose. The niche you chose for your business needs to be focused too. Meaning your niche must be focused to the specific audience that serves your purpose and skill set. Otherwise, how are you going to maintain momentum for the long-term?
We are focused on building a forever business so for that to happen you need to be driven by it every day. The best way for that to happen is to build your business around your purpose, core values, strong affinity or passion, your skill set, ultimate goal and desired future. Combining these together give you a laser focused common direction that will motivate you to persevere when you have setbacks. And you will have setbacks. Startups fail because of disconnects between everything I have just said resulting in a lack of drive to persevere. So, by now, if you have started with Step 1: My Current State you’ll be understanding the importance of all these previous steps leading to Finding My Niche and onward to putting your vision into action.
The Secret to Succeeding in Your Niche
There is essentially a market for anything, what needs to be defined is what market do you want to serve. The market I serve is providing business startups the tools they need supported by my training and coaching sessions. So, my focus is specific to topics that facilitate the needs to be successful in building a forever business. Because I focus on the beginning of a person’s startup adventure everything on my website is generally focus on that. What’s important to note is that my business is not unique, very few are, so what I work on the hardest is to become someone’s favorite. When I have enough people who I’m their favorite I become profitable with a loyal client base. Therefore, the key is knowing how to engage with your audience correctly. That is the secret to growing a successful business in your niche. Your business cannot be all things to everyone, that’s the recipe to failure.
I understand that you may not know yet what you would like to do as a business, so I provide the skill set to do what I do. What I do is fun, and anyone can do it. Just takes perseverance 😉 That’s why I say anyone can start their own business at @LightSpeed, just follow in my footsteps along the happy path. This market is big enough and specific enough to niche down to areas you are comfortable with. At the end of the day, we are serving people on a personal level and becoming their favorite. So be specific and target an audience of thousands instead, not hundreds of thousands or millions.
How to Find Two Targeted Niches to Start Your Online Business
The first step in starting your own business is finding your niche. Your niche is the market you’ll be targeting with your product or service. It’s important to choose a niche that you have a keen interest in and that you have some expertise or are willing to learn. You should also make sure there’s a demand for your product or service in your chosen niche. But how do you find your niche? It’s not always easy, but it is possible. Here are some steps to help you identify two targeted niches for your online business:
- Self-Assessment: You have already been through the steps of assessing your current state. Followed by defining your core values and purpose. And laid out your ultimate goal and desired future. Now start assessing your interests and passions you have had for years that are linked to your purpose. Review your skills, and expertise. Use your journal or brainstorm ideas in writing. Building a business in a niche you are truly passionate about or knowledgeable in linked to purpose and core values can be far more rewarding and enjoyable. But most of all be sustainable and forever.
- Market Research: Conduct thorough market research to identify potential niches that have demand. Use tools like Google Trends, Google Keyword Planner, and social media platforms to gauge the popularity and search volume of various keywords related to your interests.
- Competitor Analysis: Study your potential competitors in the niches you’re considering. Identify their strengths and weaknesses, and see if there are gaps in their offerings that you can exploit. Look at their customer reviews and feedback to understand customer pain points and needs.
- Niche Validation: Test the validity of your chosen niches by looking for evidence of successful businesses operating within them. Check if there are successful websites, blogs, or e-commerce stores catering to these niches. This indicates that there’s a market for your products or services.
- Target Audience Research: Define your target audience within each niche. Consider factors like age, gender, location, interests, and problems they face. Understanding your audience will help you tailor your products or services to meet their specific needs.
- Evaluate Monetization Potential: Determine how you can monetize your chosen niches. Explore different revenue streams such as e-commerce sales, affiliate marketing, digital products, subscription services, or advertising. Assess the potential profitability of each niche.
- Passion and Longevity: Consider the long-term sustainability of the niches. Are these niches something you can see yourself being passionate about for years to come? Building a business takes time, and you’ll be more likely to stay committed if you’re genuinely interested in the niche.
- Niche Size and Competition: Strike a balance between niche size and competition. Niches that are too small may not provide enough customers, while over-saturated niches may make it hard to stand out. Look for niches with a reasonable level of competition and a sizable target audience.
- Unique Selling Proposition (USP): Determine what unique value or solution you can offer in each niche. Your USP should set you apart from competitors and give potential customers a compelling reason to choose your business.
- Legal and Regulatory Considerations: Research any legal and regulatory requirements specific to your chosen niches, especially if they involve sensitive areas like health, finance, or technology.
- Feedback and Validation: Before fully committing, consider testing your niche ideas by creating a small-scale pilot project, launching a minimum viable product (MVP), or conducting surveys and seeking feedback from your target audience.
- Flexibility: Stay open to adjusting your niche choices based on market feedback and evolving trends. Be prepared to pivot if necessary.
Practical Steps to Help Find Your Niche
Think about the businesses you love or have an interest in starting. If you don’t know where to start, that’s normal! It seems like everyone is afraid of the same things when they’re thinking about starting their own business. We feel like we need a degree or certification first before we can launch our dream company. OK, let’s stop right here for a second and breathe. Starting your own business doesn’t have to be this scary process filled with all kinds of obstacles. In fact, it can be quite the opposite if you take one step at a time and focus on the things that excite you most and follow the happy path that @LightSpeed guide you on! Here are some practical steps for you to get started as an entrepreneur:
Find your distinctive competence.
Do you have an exceptional skill or talent, and/or capability, and a record of achievement you’ve acquired through your unique work experience? If it solves a problem, then building a business around your proven and unique competence substantially improves your probability of success. A venture filled only with your passion can sometimes not be enough, so approach this step with a balanced view. Since you are after two potential niches, one you could be passionate about while the other focused on a core competence you may have.
Incorporating a unique capability into your business model maximizes your potential return. There are people who are passionate about everything from collecting rare stamps to riding a Harley. Some of these things can serve as a foundation for a small business. If you have a unique capability that can be incorporated into your business model and provide value to your customers, you have a much better chance of success.
If you are lucky to have a core competency you are passionate about then this is a good starting point. Look at how this could be niched down to be more specific it’s it’s a broad potential market.
Listen to consumers, clients, social media, forums, review sites, etc.
When starting your own business, it’s important to know what makes your products or services different from that of your competitors. You’ll need to know that in order to be able to market your products or services in a way that differentiates you from the rest of the field. On top of that, you need to know your company’s USP (Unique Selling Proposition) so that you can clearly explain to your clients what is it that makes you better than the rest. Your USP could be a special benefit, a special price, a special quality or something else that is distinctive about your business.
To get a better understanding of your customer’s needs, you’ll want to keep your ear to the ground. Keep your eyes on social media, podcast, YouTube, forums, review/rating sites, etc. Start to understand the problems that your future customers are facing and not being met by existing products and services. This is a good way to gain insight into what makes your products or services different from your competitors. Aside from that, you’ll begin to get a better understanding of what your company’s USP is. A always keep in mind that you want to become your customers favorite and the only way to do that is to use these listening channels as also your potential engagement channels too.
Observe what competitors are doing right and wrong, could it be improved?
While you’re listening to your potential customers and clients, you’ll also want to start observing your competitors. You want to see if they’re doing anything right or wrong. There may be a way you can improve their products or services so that they become even better than they already are. On top of that, you’ll also want to see if there is an opportunity where you can make improvements to your own business. Again, this is listening and signing up to competitors mailing lists and newsletters. Look at their websites for information. Join their webinars, podcasts, and communities.
Be analytical by thinking up solutions to problems.
As you’re observing your competitors and listening to your clients, you’ll want to start thinking up solutions to their problems. This is going to help you get a better understanding of how to improve your products or services and make them even better than they already are. It will also help you figure out what your company’s USP should be, start journaling ideas.
Make the Speed of Learning Your Unfair Advantage.
You want to make sure that you’re gaining knowledge and being aware of opportunities every day. You want to be learning as much as you can about your industry. You want to be learning as much as you can about your competitors. You want to be learning as much as you can about your customers. You want to be learning as much as you can about your products or services. When you’re gaining new knowledge every day, you’ll be able to make decisions that are based on facts instead of feelings. Outsmarting the competition is how new business rise above existing established ones, or at least capturing a potion of their market for yourself. We don’t want to be the biggest but the most adaptive with a customer base that’s loyal and happy to pay for your products and services because they see the value. So bottom line, never stop learning.
Situational Awareness
A technique I’d like you to use to help assist you with discovering opportunities is Situational Awareness. You’ll use this technique to identify the potential size of the market (the niche) that has the problem.
Situational awareness is an essential skill that allows individuals to perceive and understand their environment, enabling them to make informed decisions and take appropriate actions. It refers to the ability to gather and process information from various sources, analyze it, and then use it to assess the current situation and anticipate future events.
It involves being alert and cognizant of potential threats, opportunities, and changes that may impact one’s safety, well-being, or decision-making processes. Situational awareness is crucial in various fields, such as aviation, military operations, emergency response, everyday life and in entrepreneurship & business startups. As it enables individuals to make informed decisions and take appropriate actions based on their understanding of the current situation. This is why its critical for your new business in first identifying opportunities and using the situational awareness process to make informed decisions.
Having situational awareness improves the coordination of responses, reduces risks, minimizes harm, and preserves lives. It empowers individuals and groups to gain a deeper comprehension of different situations, enabling them to react and adjust efficiently. Being aware of one’s environment also facilitates effective decision-making, conserving both time and resources.
Stages in Understanding the Situation
1. Perception
The initial phase of developing situational awareness involves acknowledging the potential opportunity or threat posed by an individual, event, or incident. This procedure entails collecting data from different technological resources, observing the environment around you, conversations, and engaging in active observation to stay well-informed about what’s happening. Your thoughts and observations need to be captured and this is best captured using a journal. This should be your go to tool for ideas, thoughts, problem solving and opportunities.
2. Comprehension
During this phase, it is necessary to process the information that has been gathered. Before addressing the opportunity, it is important to assess and analyze the collected data, as well as learn to recognize and anticipate potential risks, issues or vulnerabilities. Taking the context into consideration is also crucial in this process.
3. Projection
Prompt and effective actions are necessary when faced with a viable opportunity to facilitate making progress towards a viable option worth exploring further. During this decision-making phase, it is important to prioritize actions and allocate resources, such as time and money, appropriately in order to pursue opportunities worth progress on.
The diagram below is the Situational Awareness System you will use to identify potential opportunities and what steps are needed to be taken to taking viable opportunities through the validation process. This forms part of the Happy Path and will be covered in more detail with the following steps.
For now, familiarize yourself with the diagram and start journalling ideas and opportunities, then for the ones you see potential start investigating those as part of the situational awareness process by gathering information. from blogs/vlogs, social media, online communities, competitors, market analysis, etc. anything that will provide you insights and knowledge.
Research by reading blogs, view vlogs, join online communities, own experiences, research articles, the competition, what are people using now that can be improved, social media such as Facebook’s groups, talk to colleagues, friends, anyone who may know the niche. Use Facebook’s Audience Insights tool is good for understanding market size, https://www.facebook.com/business/insights/tools/audience-insights
In Step 12, Opportunity Knocks, we discuss the opportunity canvas and client/customer avatar/persona. Step 13 moves through Business Model Canvas, Value Proposition and Minimum Valuable Product (MVP). With the steps thereafter cover the product into market and beyond.
Bottom-line is you need to gauge the Want (the Appetite) to have their problem solved.
Buyers Mindset
Your learning has already started so it’s time to learn a key ingredient, the buyer’s mindset. It is vital to understand what buyers think as this will help determine your niche. To master situational awareness in identifying valid opportunities you need to understand the buyer’s mindset. We’ll start by asking this question:
Why People Buy What They Buy?
At the most basic level, it’s important to understand that most people buy for one of two reasons:
- to move closer to pleasure; they want to feel good
- to move further away from pain; they want to feel better
People make emotional buying decisions. Humans are emotional beings that make emotionally charged buying decisions, especially when the product or service they’re buying falls under the “pleasure” category.
People justify their purchases with logic. Generally speaking, while people make emotional buying decisions, they will justify their purchases with logic. This means as a business having reverse logistics or a easy refund policy is important in communicating trust when people make emotional purchasing decisions. If they change their mind then we want to keep their emotions positive towards you and your business.
Focus On The Problem, Not The Solution!
The starting point for any product or service is identifying the problem first, NOT the solution. Why? Because based on the ‘buyers mindset’ they are looking to satisfy a need or want related to either wanting to feel good or wanting to feel better, or both.
So, their need or want MUST first be understood otherwise you will build something nobody needs or wants. Prospects don’t care about your solution but their goals. Understand their problems or obstacles that get in the way of their goals, and then you identify the right solution to build to make the problem go away, then you will be understood. Having more passion for your solution than your prospect’s problem, is a problem!
If you are new here then I’d suggest starting with identifying your Current State covered in Step 1. For those who have been following their adventure along the happy path let’s move onto Step 12, Opportunity Knocks.