When Starting up a business, it can get very intimidating as you try to decide what your target market will be. Our Business climate in Minnesota can make it even more intimidating because we have so many fortune 500 companies stationed here which seems to cause the tax climate of Minnesota to stifle entrepreneurship in favor of mega corporations. That’s why it’s so important mitigate taxes as well as focus your business efforts in a profitable niche.

Broad markets are highly saturated with competitors which means that to start a new company, it’s usually beneficial to to identify a sub-sector niche.  Here are three way

Inspired  from Entrepreneur.com Here

Three Ways to Boil Down Your Focus Niche.

1. Identify an age range.

Think of how different generations spend money as well as how differently money will be spent on different generations. When I think of the aging baby boomer market, I’m struck with the thought that there is going to be a massive increase in the demand for goods that senior citizens enjoy. For example, Think of all the baby boomers that own houses which will be quite unpractical when they start getting their knees replaced, entering their “slow go and no go” years. Do you think they will want to transition from multilevel housing into single level townhomes?

Whatever industry you’re trying to get into, grab a pen and paper and start imagining how different ages might be responding differently – this is a great way to find a niche.

2. Use price as a niche.

Whether it’s life insurance, business insurance, real estate, cars, software or services; different price points create potential “honey holes”.  Look at what google did with it’s Chromebook; while every other computer manufacturer was fine keeping their margins and prices higher they dove into the ultra-cheap market.  One of my favorite examples of this is Vulli Sophie the Giraffe Teether which decided to go after the high-end teether market.  This toy retails for $24.99 and is lightyears beyond $3.00 alternatives.  They found a nice little honey hole of opportunity with clients.  They decided that people will pay a tremendous markup in return for knowing the paint, plastic, and components are safe.

3. Target familiar territory.

The Giraffe example leads into this – take a look at industries that have been truly comfortable and that you might be familiar with already.  Look at Uber and how they went after an ancient & familiar taxi industry.  There could be a perfect little niche just waiting to be found in very familiar

Remember Minnesota Entrepreneurs, business owners, and non-profit leaders; when you start to succeed and need help with your taxes, bookkeeping, accounting and payroll – Nuance Financial is your Minnesota accounting team you want on your side.