Selecting the Niche Market for Your Startup

Selecting the niche market for your startup is key. One aspect of this was addressed in John Gale’s post Target Market for Your Startup

This post describes a complementary process.  So let’s assume that you have chosen your niche market. Here are several additional factors to consider:

  • Perform a detailed analysis of your product. A key component of this analysis is defining the vertical markets that the product will appeal to.
    • Do some research here. There are government databases you can use for the United States and for the EU. Unfortunately other countries outside the British Commonwealth have less complete data.
    • For which functional areas in which vertical markets will use of your product be Mission Critical to their business? Be as precise/specific as possible
  • Make a list of appropriate keywords
  • Use Google to determine how many sites you find when you search for a keyword. By the way, you really need to use the search engine that you care about, presumably Google. Searching with DuckDuckGoGo  will likely yield different results. And most people use Google.
  • Use a site such as Word Tracker or Overture (now owned by Yahoo) to determine how many users are looking for each keyword; thus estimating the interest and competition. The Google Adwords keyword tool is another tool for this task. Wordstream.com, serps.com, semrush.com, keyworddiscovery.com, keywordeye.com and keywordspy.com are somewhat similar tools.
  • So this may be a good niche market for you.
  • Consider using the name of the niche market in a domain name or Website tagline.

A different approach is to look only at your competitive websites’ Develop your Website with strong differentiation and positioning

The traditional advice is to find a niche with numerous customers and few competitors selling to it. With careful positioning and differentiation and intellectual property this is very doable.

 

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