As you all know by now, this month I am talking about how to start an online business. I am going to split this series in three blog posts. The first one was published last Monday, and next one will be published on the 13^th and 20^th April.

However, every business owner must know how to do a market research if he wants to develop a business avoiding as many risks as possible. That’s why I decided to talk about market research and how to define your niche market before next Monday. I already talked about the importance of market research when we’re planning the business strategies that we want to implement. Now, let’s learn how to do it right. Let’s do it together!

1. Draft a wish list to define your niche market.

You have to be aware that you can’t do business with everyone. I already talked about researching our Ideal Customer Avatar (ICA) in order to get to know those people who we want to do business with.

I recommend having a look at your current client database and highlighting those clients that you really enjoy doing business with. Why do you enjoy doing business with them? Jot some ideas down.

Can you find the same features in potential clients? Which ones? Make a list with all the aspects of your ideal client and look for them in potential clients out there.

2. Look internally at your business.

Now you have to define your products and services. As I mentioned before, you can’t do business with everyone, and that’s why your services shouldn’t be focused on everyone out there. They must be defined and addressed at a specific public.

[Tweet “Think small to achieve big.”]

Once we have analysed our audience, we must be aware of their concerns and problems. Then, you should figure out how your business can be the best solution to these concerns. How can you help your audience?

You should also ask yourself:

• What am I good at?
• What am I not so good at? How can I improve it?
• What am I bad at? What can I do to solve this out?

 3. Communicate with your clients.

You have to let your clients know how you are going to help them and why your services are the best solution to their problems.

In order to do so, we have to turn our qualities into benefits. First of all, take a piece of paper and divide it into two columns. Then list all your answers for the question “what am I good at?” in the first column, and then try to turn that into a benefit for your clients. You have to try and think exactly as your client would. For example:

I am good at legal translation because I have studied law applied to translation, and I have also studied legal translation for three years. Furthermore, I have been working as an in-house translator for an international legal firm and have been working on legal texts for three years as a freelance translator.

He is aware of the differences about the British and Spanish legal system. Then, we will take fewer risks if we hire him and our reputation will be improved with his services. We will be able to offer tailored services to our Spanish clients, we will be able to close more deals and our internal communications will be more fluent.

Once you have all your benefits listed, spread the word to your audience!

It would also be a good idea to get to know how your clients feel and communicate this in a way that it reaches their feelings.

4. Research your competition.

It’s important to know who is in the playground with you, right? Although it’s important to get to know what your competitors are doing, I also recommend getting away from them as much as you can. Let’s see how we can do that!

Select between 5 and 10 businesses that are similar to yours and try to answer the following questions:

• What are they doing well and how are they doing it?
• What can be improved in the industry?
• What type of marketing materials are they using? Are they working well?

And the most important one…

• What can I do different from them? How can I define my services to offer something new in the industry?

I know this could be a bit tricky, but if you get it right, you will be able to stand out in the crowd and offer services that no one else does.

5. Research opportunities and risks.

You have to be aware of the opportunities that may help your business grow. Are there any professional association that you can join, any CPD course, events in your industry where you can promote your services…?

Also, we have to take into account those factors that may be dangerous for our businesses and act accordingly. For example, with the economic crisis, your clients may not be willing to invest in your business. What could you do about this?

The more we plan ahead, the fewer risks we will take.

6. Evaluate your niche.

What makes a good niche? Regarding some experts, these are the aspects to take into account when we are shaping the niche for our business:

• Could your niche take you where you want to be in the future?
• Does someone want to invest in your business? Why would they?
• Will your niche allow you to develop your business?
• How are your services different from the rest? Will they still be useful in the future?

As you can see, here we are evaluating if we can make the most out of our niches. We have to take that into account if we want a business that lasts in time. If you are not sure about it, think about what you can change in your services or in your niche or ICA to make it worth it.

7. Test it and establish SMART objectives.

Once you have launched your business, you have to test if your services are performing as expected. Establish SMART objectives and stick to them.

Are you achieving what you want? If not, what is not working? What changes can you do to make it work?

If your services are performing well, what can you do to take a step beyond?

8. Evaluate and restart.

You have to monitor all your progress within your niche. That why it is so important to be in control of your web analytics. Who is interested in your services? Take into account analytics such as demographic data, age of your audience, gender, what language they speak…

Once you have gathered enough data, go back to step one and redefine your niche according to your current data. It will be easier once you know who is being interested in your business, believe me!

Have you ever carried out a market research? Have you got any tips that I could add to the list? Leave a comment below! 

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