What is a niche?
A niche is a defined group of people who you want to attract to your business, it’s a well-defined segment (or segments) of the market.
Why is having a niche so important for a small business?
Targeting a smaller, very defined group of people to work with is so much easier than targeting everybody. Here are a few reasons why selecting a niche is a must for any small business owner:
You can establish yourself as the expert in a niche.
It is easier and more effective to market to a niche market rather than marketing to everybody.
If you target everybody, nobody will listen.
You can earn more money. Who usually charges more, a general doctor or a back specialist? The specialist obviously because they are targeting a very specific and niched problem.
You can become the leader and dominate a niche with your specific expertise.
It’s easier for your clients to refer business to you because you are the specialist.
Different types of niches:
- Industry or demographic: A certain demographic (e.g. women aged between 40 and 60, young adults, kids, Sydney men) or industry (natural health, tradies, service businesses, restaurants etc).
- Problem: A problem specific niche solves a specific problem (e.g. back pain, financial problems, weight-loss, depression, time management etc).
- Industry/demographic and problem: This niche is a combination of both of the above. For example women aged 40 to 60 (demographic) who want to lose weight (problem).
Here are a few questions to go through to ensure your niche is bullet proof:
Is someone else successful in that niche? If no one is successful in that niche, it is very likely that it is not a very profitable niche.
Is it profitable? Are people paying money in that area? Are they searching for a solution?
Are you able to be the expert in that niche? Can you become a leader in this area? Can you establish credibility and trust? Can you provide the best solution?
Are they also searching for a solution online? This is not a must, but certainly makes it easier for you to be found if the people are looking for you online.
Do you like working in that area? It obviously helps selecting a niche you like, (not just the money) you might be in it for the long haul.
Is your niche easily reachable and accessible?
Do you have experience in that niche?
Can you really make a difference in that area?
Does your niche congregate so you can market to them easier (e.g. forums, networking events, groups, read specific magazines, social media, other events)?
Is your niche large enough to tap into (but not too large)?
Researching your Ideal Client
Knowing your ideal client or your target market is crucial for your small business. The better you know your market, the easier it will be for you to market to them and attract them to your business.
It also allows you to offer them better solutions and it helps you determine how you are going to speak to them, what kind of delivery channels they prefer, where to advertise etc.
Know your target market better than your competitors and you’ll be rocking
A lot of businesses unfortunately don’t know their target market and are wasting a lot of money on marketing and advertising that doesn’t work.
So before you create another ad or marketing piece, study and research your ideal client. Find answers to the following questions:
- Are they male/female?
- How old are they?
- Where do they live?
- What kind of magazines, books do they read?
- Where are they looking for a solution (online, offline, magazine, newspaper)?
- Where are they hanging out?
- What are their biggest frustrations?
- What are their secret ambitions?
- What do they want more than anything?
- What are their dreams?
- How do they communicate?
- What do they value?
- How would they benefit from your products or services?
Once you’ve researched your ideal client, you will be able to really connect with them, make them feel understood and tailor your marketing strategies around your findings. It’s all about them!