If you are a small business, you may find that your niche is pre-ordained to a degree by the products or services that you offer (or so you may think). Or perhaps you are an entrepreneur who offers a broad range of services crossing many areas. But whatever your status, it’s important to have a niche.
When you are starting out it’s easy to overlook the fact that your business may have literally thousands of competitors. Although the market may have room for another player, you need to differentiate yourself from the competition to stand out. If you do the same as everyone else your chance of success drops dramatically.
By choosing a niche, you will find a smaller group of competitors offering a similar service to you, and it will become easier to attract attention.
Within the niche you choose, you need to be viewed as an expert and the ‘go-to guy’ (or gal), which in turn makes you an authority in your arena. Focus on your talents, skills and abilities to help you identify what your niche is.
It’s also important to ensure that you are doing what you enjoy. This is vital to make sure that you serve others with true authenticity. Read more about how authenticity helps you grow your business.
By determining and working primarily on what you love helps you stay motivated and develop a lasting attachment with what you are offering.
Another thing you should do is research your competition to see what businesses already exist in the niche you are considering. This is a good way to identify who they are and also gauge if the market is over-saturated, in which case you should tweak your choice.
Remember, that your services/products are not the only denominator in choosing the niche that’s right. Niche can also be based on location, price or a multitude of factors.
When you settle on your chosen niche you will have a streamlined focal point to your business. Instead of adopting a ‘scattershot’ approach trying to appeal to the masses, you can focus your efforts effectively.
This will lead to:-
– the ability to scale quicker as you will limit your products/services that best suit your niche.
– smarter decisions as you will already offer things that you know about and love.
– better profitability as you will target a more specific group of potential customers who are already interested in the segment you are in.
Without being fully aware of it, you may already have a niche in mind without realising it.