If your small business needs a loan for the purpose of management and administration, it can be helpful to make sure your business plan demonstrates that there is a niche market for your product. A well-researched niche market gives loan officers confidence that your product has a buyer.

There are actually 14 principles for creating a great niche market for your business, and if you follow these to the letter, loan officers will respond well. The principles are:

1. adaptation (create a spin-off from a popular product)
2. addition (add something new to your product)
3. combination (what two well-loved elements can you combine to create a great new product)
4. customization (How can you personalize your product?)
5. ease and convenience (how can you make the product more convenient?)
6. elimination (what negative aspect of a product can you eliminate)
7. enlargement (Can you super-size it?)
8. entertainment (does your product amuse?)
9. longevity (Can you make your product or its benefits last longer?)
10. portability (can people take it with them?)
11. reduction (can you make it smaller or easier to utilize?)
12. Reversal (Offer exactly what your competitors don’t)
13. Safety (Does your product add safety or reduce risks in any way?)
14. Speed (Can yo make it faster?)

Does your product conform to these principles of creating a niche market? If not, see if you can improve it before seeking that loan.