Let’s say the particular niche you’re in is the water tank industry.
It doesn’t matter whether you’re actually interested in selling water tanks or not- what matters are the questions asked to set up a niche business.
Usually, niche products and services depend on in-depth market research. You’ll need to know how your competitors operate and customers’ preferences.
Typically, niche businesses focus on specific markets. Instead of joining the water tank business to supply water tanks, find a niche within the niche.
Essential Steps for a New Niche Business:
Unlike conglomerates, the easiest way for SMEs to target the right customers is by retailing from a known franchise.
The franchised business of any niche has an existing brand identity. So, it takes little effort to sell the products and earn more reputation.
Develop a Business Plan
Two significant ways of investing in a niche business like water tank sales are through sole-proprietorship or joint venture.
Also, you have to be clear about selling food or non-food grade water tanks. Without a clear business plan, your competition might outsmart the ideas you are bringing into the new business. Competitors are like sharks; new business owners have to swim with them cautiously.
It’s essential to resolve the bureaucracy of setting up a niche business before taking off with your plans. Business lawyers can handle issues like contracts, legal agreements, permits, and tax documents.
To develop a business plan, you could hire a specialist or professional to design a plan catered to you. You could even take the extra step to find your competitors and speak with them to find out what they’re doing during organized networking events for SMEs.
Branding
Branding is essential to get repeating clients- and it’s more important than just your business name. You’ll need to find a talented graphics designer to prepare a logo and website. A good way to do this is to find a startup graphics company with a good showreel by going to networking events and meeting other small business owners.
Budgeting
Conduct feasibility studies on your preferred tank manufacturer. It will be better to sign up with them as a distributor of water tanks. With the information, you can plan a budget, and save the startup capital. Additionally, business plans include yearly projections, recruitment of employees and targets.
Choose Your Products
In your water tank business niche, the type of product with the highest demand is the most attractive. However, it’s helpful when you are not the jack of all trades.
While the food-grade type is for domestic use, non-food grade types are for storing greywater. Buyers also use non-food grade water tanks for commercial purposes like rearing fish. However, this type of water tank has a massive demand from homeowners and residents that store rainwater.
People in drought-prone areas need to conserve water with tanks. Rainwater utilization is an ideal way of reducing water consumption bills from the utility company. Also, people use rainwater to flush toilets, water the plants, and wash vehicles.
Marketing
While traditional methods of marketing are useful, digital marketing produces more results. Serious water tank sellers use Facebook and other retail platforms on the internet. Usually, water tank sellers increase their prices when demand is more than supply. Also, they can add 100% markups to their cost prices.
Without targeting the right clients with digital marketing tools, you might think that nobody needs your products. You can hire a digital marketer to integrate tools on your website and display your products across social media platforms.
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