How to Build a Successful Niche Business

How to Build a Successful Niche Business

Niche products and services can potentially generate fantastic revenue if they manage to capture the hearts and wallets of a dedicated consumer base.

Unlike generic products that target massive audiences, niche businesses cater to the tastes and desires of highly defined markets.

The truth is that these audience segments are often overlooked by larger competitors. That’s why niche businesses have the potential to address audiences that are underserved. And the good news is that the outlets and resources allow identifying and reaching a target audience easier than ever.

So are you ready to become a niche business owner? Here are 5 tips to help you build a successful niche business and become the biggest fish in a small pond.

1. Find a place for yourself in the niche.

A niche marketplace is basically a small but highly specialized market segment within the broader viable commercial industry. Your first step is to identify the niche marketplace that you want to enter.

Conduct thorough research to learn more about the demographics of your target audience:

  • Who is part of that marketplace?
  • What is the reason behind their being underserved?
  • Are you in the position to serve them better?
  • How can your product or service unite them?

If you have a simple product or service, your first objective is to identify how it can serve as a solution to their problem.

Compile all the data to produce detailed personas of your target customers. Check out the key decision-makers in your niche marketplace. They can be enthusiasts and influencers who use social networks and blogs to talk about the niche topic.

2. Create a simple product or service.

The 5 Key Elements of a Strong Logo That Will Make Your Brand Successful

A simple product or service is an offering concentrated on the needs of a narrow customer base. For example, if you are toying with the idea of becoming the top manufacturer of cat socks, there are several questions you need to ask yourself first.

  • Will anyone need that type of product?
  • What is uniquely useful about it?
  • What makes it better than similar products offered by your competitors?

As you develop your product, you need to create your online presence. Come up with a great brand name, and develop marketing tactics that will focus on selling that specialized product to your target audience.

Being a specialist has many merits, and product development is no exception. If you’re sure that there exists a target market for your product, there’s no reason why you should hesitate.

3. Know what niche marketing is all about.

You can’t kickstart your niche business without knowing how niche marketing works. You need to stand out from the crowd but also show your target audience that your product will satisfy their needs and preferences.

The good thing about niche marketing is that is much less competitive because you’re dealing with a small target market.

That’s what also makes it more affordable. You won’t have to spend nearly as much of your resources for testing different messaging and tactics. Moreover, customer loyalty is high in this context.

Your marketing strategy needs to be centered on nurturing people who truly believe in your product or service. These fans will make up the backbone of your business and be the reason for its future success.

For that to happen, they need to believe that you have their best interest at heart. You need to show them that you understand that much better than your competitors.

Finally, when you run a niche business, you simply need to know your customer base inside out. Since you are targeting a particular audience, your campaign will be simple and straightforward, but it can’t miss its mark.

4. Be unique and relevant.

Use every opportunity to show your target audience why your product or service is a better fit than competitive offerings. Take a good look at your competition to see what makes you stand out and what your competitors don’t have that you offer. That way you will know how to communicate your value as more relevant to your niche marketplace.

For example, 1300 Rubbish is a company that specializes in delivering a single type of service but does it way better than competitors who offer a wide range of services.

Your competitors might serve the need of your target in their multiservice one-stop shop, but you can be sure that your marketplace would prefer to hire a specialist. If your competitors offer low-cost services, convince your niche that what they need is high-quality craftsmanship.

5. Become a leader in your niche.

Since you’re the creator of the simple product or service that serves your niche, you’re in the unique position to offer your marketplace valuable insight and advice. Don’t just proclaim that you’re an expert.

Shameless self-promotion is a dead end in the niche marketplace. Instead, bet on authenticity. Tell the story about founding your business. Show the problems you encountered and how you solved them.

Demonstrating how your product or service matches the expectations of your target audience is an excellent occasion to display your expertise. You can publish relevant content on blogs, actively participate in groups or forms, issue press releases and take part in industry events and conferences. Show yourself as someone who knows your niche marketplace best.  

Take advantage of these 5 tactics to develop a successful niche business and take your marketplace by storm.

About The Author

Melanie Saunders is a blogger and content manager at 1300 Rubbish – experts in the field of rubbish and junk removal. Personally, a huge fan of sustainability and green living.

Are you ready to become a niche business owner? Here are 5 tips to help you build a successful niche business and become the biggest fish in a small pond.

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How This Family Guy Makes $10,000/Month Online Teaching Others How to Make, Save and Invest Money

How This Family Guy Makes $10,000/Month Online Teaching Others How to Make, Save and Invest Money - Interview with R.J. Weiss from TheWaystoWealth.com

This is an interview-style post with R.J. Weiss from The Ways to Wealth.

Hey R.J. What’s your background and what do you do?

I blog about all things personal finance at The Ways to Wealth.

Before I went full-time into blogging, I spent ten years in the financial services industry. Specifically, helping families buy the right type of life insurance.

During my time with a full-time job, I’ve always had different side hustles going on. From freelance writing, Amazon FBA, conversion rate optimization, to website design — there were many projects I pursued outside of work.

How did you start your career in finance?

I got started in finance straight out of college working for my the family insurance business. As I love the financial planning side of things, I choose to specialize in life insurance planning. This led me down the path to obtaining the CFP® Certification.

What made you start blogging?

The Ways to Wealth, which I started in 2016, has been my 5th blog.

The others mostly fizzled out most due to a lack of interest. But, in 2009 I started a personal finance blog called GenYWealth.com (no longer around) that had some success.

The idea GenYwealth.com was to write about what I was learning about studying to take the CFP®. The blog was, by all means, a success. I was able to gain valuable knowledge, pass the CFP® exam, earn some extra money and build up a good community.

I then took this knowledge and started a business blog, which allowed the insurance agency I was working for to generate leads.

I started The Ways to Wealth because my passion is personal finance–from investing to travel hacking, I love the challenge of optimizing my finances.

How was The Ways to Wealth born?

I didn’t have much of a plan for starting The Ways to Wealth when I purchased the domain name.

I was actually thinking it would be a niche site, which was inspired by Pat Flynn’s niche site duel. Then, I came across the income reports of Michelle Schroeder-Gardner and wisely changed direction to a more traditional blog.

This change came about 6-months after starting to blog.  I did a timeline of the site in one of my income reports.

What worked best when trying to grow the site?

I had a decent knowledge of SEO. So at first, I started growing the site with email outreach. One of the first posts I had about best investing books of all time, had about 15 links to it.

This was nice to start with but was quite slow to build up, as it can take a while to earn Google’s trust.

The big turning point came when I started to understand Pinterest. I spent a few frustrating weeks on the platform, then it finally started paying dividends.

I went from about 100 sessions a day to 1,000, which was huge for me at the time.

How did you get to 3 million monthly viewers on Pinterest?

the ways to wealth pinterest 3 million monthly views

I lay out my Pinterest strategy here. But at the core the idea is to:

1) Write high-quality content that Pinners want to click through, read, and share.

2) Pin to my own and high-quality group boards, with a keyword-rich description.

3) Continue to Pin my best pins across my own boards/group boards, ruthlessly eliminating Pins that don’t perform well.

One thing to keep in mind is impressions don’t mean much on Pinterest. What counts are clicks to your website. So, you want to design not for impressions but clicks.

What aspects of the online business are you outsourcing or automating and how?

The first thing I outsourced was Pinterest design. I’ll design about 30-40 pins a month, so this was big time saver for me.

Of course, it took some work to get going. At first, I hired 5 or so people on Fiverr. I found one decent designer but the work quality deteriorated over time.

I then went to Upwork and posted a job for a  graphic designer. I found a great team down in Argentina, who I’m very happy with.

I’m currently experimenting with working with a ghostwriter. A few of my latest posts have been transcribed from my recording, with the ghostwriter making sense of it all.

I can compile about 3 posts in 90 minutes, then take another 90 or so minutes to prepare them. Saving me around 3-4 hours per post this way.

What’s your main income stream and why do you think it works for you?

My main source of income for the blog is affiliate revenue. It works because the partners I do have are high-quality businesses, who deliver value and solve real problems. This makes it easy to naturally link to such a partner.

When did you start making more than $10K/month and what was the turning point?

My first month over $10K was in January of 2018. In December of 2017, income was around $3,000 and in July of 2017 around $500. So, it was definitely a jump.

What happened then in January?

First, personal finance is at its peak interest in January.

Second, I had multiple Pins go viral.

Third, in November I started driving traffic via Facebook to the site. So, in January I could take campaigns I’d been fine-tuning for a few weeks and scale them.

How do you balance work and family life?

I have a routine I stick to Monday through Friday.

When inside of my designated working hours, I work. When outside of these hours, I’m not.

This is a lot easier said than done. But the thing important for me is not to take work everywhere I go. This means I don’t have any apps on my phone that are work-related (email, analytics, etc..)

What are you 3 best finance tips for newbies?

  • Focus on your savings rate. How much you save is the most important decision you’ll make.
  • Small incremental improvements add up over time. My favorite example is increasing your savings rate 1% every quarter, means you’ll be saving 20% of your income in just 5 years.
  • Study happiness. Become a student on how to increase your level of happiness. The natural result is you’ll want less overtime, making the game of personal finance a lot easier to win.

What books, blogs or podcasts help you stay motivated along the way of growing an online business?

I read a fair amount to keep fresh ideas in my head.

My favorite podcast is The Tim Ferriss Show.

Two blogs I enjoy reading are:

Farnam Street
Barking up the Wrong Tree

And as far as books. I try to read one a week. A few books I would recommend to online entrepreneurs would be:

Deep Work by Cal Newport
The Compound Effect by Darren Hardy
The Four Hour Work Week by Tim Ferriss

Pin this post if you enjoyed the interview.

Check out my interview with R.J. from TheWaystoWealth to see how he entered the finance niche, started making money blogging, began bringing traffic from Pinterest and monetizing it with affiliate marketing, and is now making $10,000/month from his online business. #blogger #interview #blogtraffic #incomeideas #income