Creating a successful business starts with targeting the right market and niche. Your offer may not be converting simply because you’re in the wrong market. By strategically selecting a market and narrowing down to a specific niche, you can significantly increase your chances of success. Here’s how to accomplish this:
Step 1: Understand the Three Levers of Success
To create a thriving business, you need to master three key components: Market, Offer, and Persuasion.
Market: Ensure you are in a positive or neutral market. This means there is demand for your type of product or service.
Offer: Create a grand slam offer that solves all the major problems your target audience faces.
Persuasion: Effective persuasion is crucial, especially if you are in a competitive market with similar offers.
By focusing on these three levers, you can ensure that your efforts are aligned towards creating a valuable and attractive proposition for your customers.
Step 2: Identify the Right Market with Four Key Variables
When picking a market, consider the following four variables to ensure you are making a strategic choice:
- Pain: Choose a market where clients desperately want what you are selling. The greater the pain point, the higher the demand for a solution.
- Purchasing Power: Ensure your clients can afford your product or service. If they have the financial means, they are more likely to invest in your offer.
- Easy to Target: Select a market where clients are easy to target through advertising and marketing efforts. This reduces your cost of acquisition and increases your marketing efficiency.
- Growth: Opt for a market that is growing. A growing market means more potential customers and opportunities for increased sales and leads.
By evaluating these variables, you can identify markets that have a higher likelihood of success and profitability.
Step 3: Find Your Submarket within the Main Markets
Most businesses fall into one of three main markets: Health, Wealth, or Relationships. To find your submarket, you need to:
- Help a unique person solve a very specific problem in a unique way.
- Overcome their biggest objection or worry.
For example, within the Wealth market, you might tap into submarkets such as:
- Investing in real estate
- Building sales teams
- Making money in the stock market
- Advertising strategies
- Creating amazing offers
Similarly, in the Health market, you could focus on:
- Weight loss programs
- Fitness training
- Mental health solutions
By finding a submarket, you can target a more specific audience, making your marketing efforts more effective and your offers more appealing.
Step 4: Embrace the Concept of “Riches Are in the Niches”
One of the most powerful strategies for business success is niching down. Here’s an example to illustrate the impact of narrowing your niche:
- Generic Offer: Time Management Course – $19
- Niche Offer: Time Management for Sales Professionals – $99
- More Specific Niche Offer: Time Management for Outbound B2B Sales – $499
- Highly Specific Niche Offer: Time Management for Outbound B2B Power Tools & Gardening Sales Reps – $1997
By going from a generic $19 offer to a highly specific $1997 offer, you not only increase the perceived value but also position yourself as an expert in that particular niche. This allows you to charge premium prices and attract more targeted clients.
Conclusion
Picking the right market and niche is a critical step in building a successful business. By understanding the three levers of success, evaluating key market variables, finding your submarket, and embracing the power of niches, you can create offers that resonate with your target audience and drive significant conversions. Remember, the more specific and unique your offer, the more valuable it becomes to your audience. Start identifying and targeting the right markets and niches today to set your business on the path to success.