Research has shown the biggest reason people fail in their businesses is that they have chosen the wrong market. It can be discouraging to think you can do the work to listen to the market and give them what they want, but if you haven’t chosen the right market in the first place, it’s possible that your business won’t make it.
Ryan Levesque, the author of the #1 National Best-Selling book ASK, spent three years studying businesses to help him understand why some businesses who followed his methods were thriving, while others were failing. In his research, he found common factors present in all markets that were successful.
“I’m fascinated by the success of the unsexy industries.” – Nic (20:52)
There are five components that can be found in all successful markets. If you utilize these “Five Market Must-Haves” when selecting a new market, you’ll be able to be successful regardless of the obscurity of your niche.
Make sure that the market is evergreen. It’s important that the market was relevant in the past and is likely to be relevant in the future. An excellent example of an evergreen market is gardening, which is one of the longest lasting hobbies in America.
Look for enthusiast markets and to avoid problem-solution markets. In enthusiast markets, people stay engaged over a long period. Pet owners would fall in this category since they are likely to need various products and services throughout the life-cycle of their pets. On the other hand, if someone’s basement is flooded, they only need to fix that once. It will be difficult to maintain longlasting success with a business focused around this problem.
Solve a problem that is urgent within that market. A pet owner might think that a dog-sweater is cute, but there’s typically no urgency to purchase. Potty training, however, is an urgent problem. People in these markets are generally not price-sensitive. They’ll pay whatever it is necessary to alleviate their pain.
Find a market that has future problems. Find a market with continued pain points, for which you offer the solution. For example, a business coach can assist the client in launching their business. The lifetime value of this client is great, as a growing business will come with continual challenges.
Choose a market that has “players with money.” Target individuals who are predisposed to spend money on your product or service. One of the best examples of this is the golf market. Most golfers are working professionals, and they spend money on all sorts of things like equipment and training.
If you are considering a new business venture, remember that choosing the wrong market can destine you for failure regardless of how great your product or service might be. Take the time to do the research and due diligence to find the right market to go into, and you’ll be setting yourself up for success.
Some Topics we talk about in this episode:
- Introduction – 0:27
- How Writing a Book Can Open Doors – 1:46
- The Single Biggest Mistake When Starting a Business – 5:16
- Ryan’s Story – 10:40
- The Five Market Must-Haves 14:43
- Mistakes to Avoid When Choosing a Market – 30:42
- Get a FREE Hardcover Copy of Choose – 34:12
- Wrap-up and Takeaways – 38:00
How to get involved
- An entrepreneur alone is an entrepreneur at risk. Join the community, and join the conversation in the “Preeminence Unleashed”Facebook Group.
- If you want to continually be challenged in your business growth, sign up for Nic’s Network Newsletter.
- To get a FREE hardcover copy of Ryan’s new book Choose + the 25 top niches in 2019 + $200 in bonuses, visit his website.
- Find out what type of business you should start based on your personality, goals, and other factor with Ryan’s free assessment.
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