Niche businesses are becoming a popular way for entrepreneurs to enter markets and start their first businesses. These businesses often begin with an idea for a product or service that fulfills a market need. Many times, these products or services are in an area of interest that the entrepreneur is very passionate about. This passion is usually expressed in all areas of the business and it is that story behind the business that attracts customers in droves. The passion drives the story and the story drives the business. Wouldn’t you rather buy from a business that is a super-excited expert in your hobby or interest? I sure would.
How Small is Niche?
So, how small should you niche be? How about laser engraved wood name tags? Is that small enough? WoodenNameTags.com is the place to get your fill of name tags laser engraved on wood. I can see it on your face, this is getting excited. The name tags they produce are terrific and very creative, thanks to the owner’s focus and commitment. Jim & Cheryl Coffee work as a team to make WoodenNameTags.com a great niche business. Regretfully, according to their site, they are so busy with existing clients that they are no longer accepting new clients. On the bright side, they have some great pictures of some great tags they have made in the past. Check some of their work in this slideshow.
Can I Make Money in a Niche?
Niche markets are by definition, very small, focused businesses. Just consider the name tag market. Sure, there are possibly millions and millions of people that need name tags, but there is competition everywhere. You can print name tags on your own computer, you can purchase cheap plastic ones, or you can even make your own from colored paper and a variety of crafty ideas. How could anyone make money in such a market?
A surprising amount of money can be made in niche markets. It really depends on the niche, but often times you can find quite a number of people with the same interests as your niche. Just consider WoodenNameTags.com; they are so busy with current clients that they are not able to take on any new clients. Granted, the name tag business is only a part of their entire business, but considering how well Jim & Cheryl Coffee is doing with laser engraved wood name tags, just imagine what success you could have with your own niche business.
Another Niche Example – Kustom Caps
In a previous post, you were introduced to Kustom Caps, a niche business that laser engraves aluminum headset caps for bicycles. Not familiar with headset caps? A headset cap is a small item that caps the tube of a bicycle frame where the handlebars are attached. A couple of guys decided to start a business laser engraving custom messages on this very minor part, adding personality and motivational phrases to bikes. They decided to focus on a very small part of what could be a very expensive piece of equipment. The niche was found in the details.
Do you have a need? How about an idea? There are countless ways to improve life by creating both functional and decorative products and designs. These products and designs do not have to serve a large market, they only have to fill a niche.
Do you have a niche?