For many entrepreneurs out there, categorizing their enterprise can be more interesting than meets the eye. There is a way to work towards developing a new business category, and if you want to, you could end up being the first to develop a new one. However, if you want to go ahead and create a new business category, there are a few questions you need to ask yourself.
Firstly, when you are going about creating a new category, try to stick with something you know well. Your familiarity with the market you are trying to cut up will be the tool with which you do the cutting. Look at the broader category and find a pain point that can be extrapolated onto the greater market, then do the math and find out how viable a prospective new category is. If there is a new market out there and you are the one who’s done the work to figure it out, it’s time to provide the evidence. Analytics and information gathering is key, as no one will take you seriously if you can’t back up your assessments.
Deductive reasoning and sales data will also be a part of the categorization process. In the first steps, you will have to do the dirty work yourself, but if you can break a new business category through and corner it, the rewards will make the work well worth it.
