According to the Merriam-Webster dictionary, the word "niche" comes from the old French word "nicher," which means "to nest." This tells you that the niche refers to an organism's habitat and its role in the larger environment or ecosystem of which this organism is a part. It does not matter whether this organism is human, animal or plant.
Another definition for the word "niche" is a place, activity, status or employment to which a person or an object fits perfectly. A niche can also refer to a corner, nook or recess in a building or in one's house.
The definition that you are most interested in is this: The niche is a specified sector of the market. The people in this sector of the market have a specific need, and this need can only be fulfilled by certain products and/or services particularly designed to address that need.
What does this tell you? This definition identifies three characteristics of the niche to which you must pay close attention.First: Niche Is Targeted
You need to identify that particular sector of the market on which you will focus all your business efforts. You will also need to narrow down your niche as finely as you can. You will find out later why this is necessary and how you can do it.
Second: Specific Needs
The people in the niche you are targeting have specific needs. It is your job to discover what these needs are. Only when you know for sure what the needs of your target audience are, you will be able to come up with a product that suits them best.
Third: Product Must Fit The Needs
Whatever a product or service that you are going to offer your targeted niche must fit them to a tee. Your product should be as perfect a solution to your targeted niche's concerns as it can be. Once people see your product, they will tell in a millisecond: Yeah, this is designed for me. Otherwise, you will not make a sale and will only end up wasting your time, effort and resources.
Remember that your goal here is to search for your niche and discover everything you can about it. You basically are looking for the stark realities for your particular sector of the market.
This is what many beginners in business unfortunately get wrong. They make the mistake of choosing their niche rather than finding it. They go through product development first before researching their niche, so they really have no idea whether or not their product will win an attention from audience.
It is completely opposite if you will find the niche first before going into business building and product development.
When you find your niche, you get to know your target audience. You get to discover what they need and what makes them tick. Once you have this knowledge in your pocket, you can come up with the appropriate line of products and/or services that will best suit your audience's needs.
You will also be able to come up with a unique selling proposition (your competitive advantage) that your audience will not be able to resist.Even more, when you will find your niche, you will also be able to create a formula for your business that will guide its advertising and promotions. More importantly, you set the groundwork that will lead your business towards longterm growth when you make the effort to find your niche and know it intimately.
Do you see the power here?Niche profile is your business road map – it is your business success formula.
Therefore, if you will spend enough time to research the niche, your profitability is almost guaranteed.