The idea of finding an unserved market is an ideal goal for all those thinking of starting a new business as well as for many existing businesses. The majority of new businesses are entering an overcrowded market offering a product or service that is already in existence. Competition is in place and finding a unique benefit to offer to the same target market, besides lower pricing, is at best a difficult proposition.
Finding an unserved market, a unique niche, may be do-able, but it’s filled with unseen pitfalls. The first question to ask is “Why does this unserved market exist?” Has someone targeted the same market and failed?
Consumers are often willing to jump on the “bandwagon” when a new service or product is introduced, especially if it is something “trendy”. The question is, will it be a long lasting interest? Is it something worthwhile investing your money in?
Many small business owners have a business that they believe in, but have not researched the needs of their target market. The usual sequence is to invest the money, open the business and then hope that there are people who will buy the products/services.
All stages of a business life, from a start-up to an established business, need to constantly be challenging themselves to find new products/services to serve their clients. The most important thing that has to be accomplished before an investment is made in a new product or service is the testing of its acceptance by the target market.
I believe that speed is critical when introducing a new product/service. It is possible to get a quick overview of the acceptance by implementing several of the following:
- Show it to your target market. Call on your current customers and make a few “cold” calls to get first hand feedback.
- There are hundreds of trade shows; spend the money and showcase your items at one. This is a great way to contact a lot of people in a short amount of time.
- Present it to your business support group and let them share their views.
- Put together several focus groups; offer a continental breakfast and do this in conjunction with your bank, CPA, or attorney: (their names will lend credibility to your group)
Some of my clients have completed this analysis in less than 30 days. It takes time and discipline, but it’s an important first step before a lot of time and money is invested.
It’s kind of fun to do the impossible. Walt Disney
Nick J. Petra CFP I would like to walk the journey to success with you. www.strategicduck.com