Finding a Niche and Developing a Unique Selling Proposition

“Most small-business owners dive into their niches because they love the product or service they provide. The annals of small business are filled with the tales of founders who cared so deeply about their product or service that they subsequently decided to make it their life’s work so they could enjoy getting up in the morning again.” - our text

What is a Niche? In biological terms, a “niche” is defined as a small ecological space in which an animal can find ample resources to survive, with few predators or competitors. A niche can also be a place that has not seen a kind of animal before. The island of Mauritius, for thousands of years, saw no humans, rats, or other kinds of ground-dwelling predators. A breed of flightless bird evolved to take advantage of the safe, food-rich niche on the ground that other birds had neglected. This bird was the dodo.

A Niche can be based on: A new product or service. A new product or service. A new product or service in a particular area. A new product or service in a particular area. A change in a particular product or service to A change in a particular product or service to focus on a sub-group of customers. focus on a sub-group of customers. An existing product or service, but in a new An existing product or service, but in a new area. area.

Niche examples: Heatless soldering. Heatless soldering. Chem-dry carpet cleaning. Chem-dry carpet cleaning. A new product or service. Heatless soldering A new product or service. Heatless soldering A new product or service in a particular area. A new product or service in a particular area. Chem-dry carpet cleaning Chem-dry carpet cleaning A change in a particular product or service to A change in a particular product or service to focus on a sub-group of customers. focus on a sub-group of customers. Kalani Coffee Kalani Coffeee An existing product or service, but in a new An existing product or service, but in a new area. Espresso Stand in Houston area. Espresso Stand in Houston

Finding a Niche Value Chain Analysis Value Chains are a visual depiction of an industry from producer to consumer. Coffee business: Farmer > Wholesaler > Roaster > Retailer > Customer So what are some possible places where we could enter the value chain?

Life of a Chair

What is a Unique Selling Proposition? It’s what makes us stand out from competitors within our niche. The search for a niche is connected to the “unique Selling Proposition” because often it is the USP that provides the feature that makes us different or unique; that lets us slip into an existing niche easier, or that helps create a whole new niche.

Examples of the Unique Selling Proposition 30 minutes or less 30 minutes or less Pay me now, or pay me later Pay me now, or pay me later Oil change in 20 minutes. Oil change in 20 minutes. 60 minute tune up. 60 minute tune up. 7 – 11 7 – hour fitness 24 hour fitness 90 days same as cash 90 days same as cash Rent to own Rent to own Organic Organic Unfinished furniture. Unfinished furniture.