by Amanda N.

Created on: April 01, 2010

A question that most start-ups often face with is, "How to find niche markets?" It is fundamental because it will determine what kind of product or service you will offer. If you get it wrong in the beginning, you will have to pay for it. But gearing up with no previous marketing experience, how could you answer that question? Follow the steps below, and you will know the answer in no time.

1. Passion
Passion is the foundation of a successful business. That said, the first step to finding your niche market is dig out where your passion lies. If you are uncertain of what it is, a quick trick is to ask yourself, "Would I be as committed to doing A (your hobby) if I am not paid at all?" If your answer is "Yes," you hit home. You may have more hobbies than you realized, but don't get too hasty to narrow them down. List and keep them aside. You can make up your mind after going through the following steps.

2. Knowledge
Passion does not guarantee you can find a niche market. In others' eye it may not even worth a dime. Besides, no one would be interested to know your passion if it offers no value for them. To make your passion shine everywhere, you must add some value to it. First, learn as much as possible about your passion. Then, with what you know, decide what product or service you can provide. Let's say you love crocheting. Yet your set of crocheting skills is limited to those most basic ones. Think of ways to broaden them. You can, for example, borrow books from the public library and take a crocheting course to upgrade your knowledge and skills. Educating yourself can take time but it is worth it. You have to have a solid cache of knowledge and hands-on experience or else you would look sloppy in people's eye.

3. Understanding Your Target Market and its Need
Understanding your target market and their needs are crucial to finding a niche market. There are many ways to do it. A straightforward method is to go to Google Insights or Twitter to have a quick look at the latest market trend. However if you want to thoroughly understand your target market, be more immersed in the life they lead. Reading blogs and joining forums are a good starting point for immersion. When you start aligning your thinking and behaviors in a way of your target market's, you will naturally understand their need. Again, this takes time. But if you are devoted to the success of your business, it is worthwhile.

By now you should have got a full picture: the product or service you can provide

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