How do you research and enter new markets or niches?

1 Identify your target market

The first step is to define who you want to serve and what problem you want to solve for them. You can use various tools and techniques to segment your potential customers based on their demographics, psychographics, behaviors, needs, and goals. For example, you can use surveys, interviews, focus groups, online forums, social media, or keyword research to gather insights and feedback from your target audience. You can also use existing data sources, such as market reports, industry trends, competitor analysis, or customer reviews, to understand the size, growth, and characteristics of your target market.

2 Evaluate your market fit

The next step is to assess how well your product or service fits the needs and expectations of your target market. You can use various methods to test and validate your value proposition, such as landing pages, prototypes, MVPs, beta tests, or pre-sales. You can also use metrics and indicators, such as conversion rates, retention rates, customer satisfaction, referrals, or feedback, to measure and improve your market fit. The goal is to find a product-market fit, which means that you have a clear and compelling offer that solves a real and urgent problem for a large and reachable market.

3 Analyze your market potential

The final step is to estimate how profitable and sustainable your market entry can be. You can use various tools and frameworks to analyze your market potential, such as SWOT analysis, Porter's five forces, PEST analysis, or BCG matrix. You can also use financial models and projections, such as break-even analysis, revenue streams, cost structure, or ROI, to evaluate your market potential. The goal is to find a market opportunity, which means that you have a competitive advantage, a scalable business model, and a positive cash flow in your target market.

By following these three steps, you can research and enter new markets or niches with confidence and clarity. You can also repeat this process for different markets or niches, or for different products or services, to find the best fit for your business goals and resources.

4 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?