Whether you’re building a startup or working for a large company with hundreds of employees, there is always room for growth. One of the time-honoured ways of finding new growth opportunities is by identifying and capitalizing on niche markets.
It’s no different for the insurance industry. A niche market is described as being a focused set of people who want to purchase a specific product or service. Within a large market, there are several smaller markets with more specialized needs. Take grocery stores, for example. Within the wide range of supermarkets, there exist specialty markets with only vegan products, aimed at the smaller audience of vegan consumers within the larger market of all customers. Niches exist in every other industry as well—you just have to know where to look.
So, what are the characteristics to look out for when trying to find a niche for a business? Four of the most important things to consider are specificity, demand, competition, and passion. Let’s break each of those down.
Specificity: As mentioned earlier, a niche has to appeal to a specific target audience. Too broad and it stops being a niche; too specific, and the target audience will be too small to sustain the business and allow for further growth. After finding a possible niche, it is important to also take the time to research it too; this is where demand comes in.
Demand: Even if there is a niche, it doesn’t guarantee a market. Doing research and figuring out whether there is any demand for products is incredibly important. No one wants to create a business that ends up with no customers! Figuring out what the needs of customers are, and how to meet them, is a valuable step.
Competition: Another important thing to research is the amount of competition within a particular market. Take a look into the differences between businesses, and which ones are more successful. Doing this allows you to determine what can make your business unique, which can aid with marketing. Competitor research should be done both before starting a new business, and regularly once the business is up and running. Industries are constantly evolving, and it is important to stay ahead of the game.
Passion: Success in the business world often comes from the passion of the owners and workers. When looking for a niche market, it is also important to consider your own interest in the subject, as passion for the products or services offered will create more enthusiasm and yield better results. Your authentic passion is usually what attracts new customers to you.
A ‘niche’ within an industry: The Canadian Broker Network
Niche markets don’t have to be just for goods and services either—in some cases, success can be found by looking at possible shortcomings within an industry. In the case of Bruce Rabik, the COO of Acera Insurance and founder of the Canadian Broker Network (CBN), the niche he found was a flaw within the insurance industry. “I and other Canadian brokers saw that many of us were starting to sell our brokerages to international companies in order to ‘de-risk’”. he explains. “It (was) a true challenge to remain independent”.
Faced with this issue, Rabik founded the CBN as a way to support brokers looking to maintain their independence. He was able to turn his passion for “maintaining a strong ecosystem of independent Canadian insurance brokers” and his awareness of the shortcomings within the industry into great success. Having started with just 7 members, the CBN is now the largest network of independent brokers in Canada, representing over 2000 workers across more than 100 offices.
Bruce Rabik’s strategic vision extended beyond merely identifying a niche; he focused on creating a sustainable support system for independent brokers through the Canadian Broker Network (CBN). Under his leadership, CBN developed comprehensive training programs and advanced technology platforms that have enabled brokers to enhance their services and remain competitive. Rabik’s emphasis on innovation and collaboration also led to strategic partnerships within the industry, fostering a community where brokers can share resources and best practices. This holistic approach exemplifyies how addressing specific industry gaps with tailored solutions can drive long-term success.
In addition to his role with Acera Insurance and the Canadian Broker Network, Bruce Rabik has been a vocal advocate for regulatory reforms in the insurance industry. He has actively participated in various industry forums and advisory panels, pushing for policies that support the growth and sustainability of independent brokers. Rabik’s efforts have led to several key legislative changes that have helped level the playing field for smaller firms. His dedication to advocacy has helped create a regulatory environment that supports innovation and fairness within the industry.
Utilizing niche markets to maximize a company’s growth can be incredibly rewarding. Doing proper research into demand and competition, making sure that the niche is specific, and harnessing your own passion for what you do gives you the potential to open up new opportunities for your business or your industry. Good luck!
