It is common for small business owners to work on attracting and appealing to a wide audience and try to get as much business a possible from a broad customer base. This approach often stems from the fear you might miss out on business opportunities and it feels much safer to service a large market.
Now this might sound counter-intuitive, but narrowing your focus and targeting a specific niche market that is the right fit for you (rather than being a generalist) can actually make your small business more successful and profitable.
Think of your niche, as your speciality.
A niche small business is a starting point, not an end point. Starting off niche doesn’t mean you have to always remain niche, you can always broaden and target other markets to grow your business in the future.
Here are 5 reasons why you should have a niche small business
1. Stand out from the crowd
Let’s just say you’re a personal trainer. I don’t know about where you live, but where I live there are loads of personal trainers who are advertising and running their boot camps. It’s a very crowded market. Rather than trying to appeal to masses and your pitch says something like “I help people get fit”, think how much more you will stand out by targeting a specific market “I help new mums get back their pre-baby body in a supportive and fun environment”. When you try to compete with everyone else you get lost in the crowd.
Create a niche for your small business to stand out from crowd
2. Be the expert
Being niche allows you to become the go-to person and expert in your field. Specialisation means it’s easy for people to refer you to others which will increase your inbound leads. And remember, people are more willing to pay for expertise. Have a think about what you would like to be known for.
3. Targeted marketing and advertising
Instead of spreading your marketing and efforts far and wide, your marketing will be much more effective as you can select methods that will reach your target market only. The voice you use in your copy can be tailored to your specific customer group so it sounds like you are speaking to them directly which will keep their attention. Going back to the personal trainer example above, you wouldn’t need to advertise everywhere, just where new mums are likely to be, so you will be getting a bigger bang for your buck.
4. Clear and meaningful products and services
When you get specific, people coming across your business will know exactly what you are offering. Being niche allows for clarity. Clarity will enable you to package your products and services in such a way that it will appeal to and be more meaningful to your customers.
5. Know your customers better
When you really know and understand your ideal customer you are able to create the sort of business they are looking for. It enables you to better address their specific issues, needs and wants. You can connect with them on a deeper level and create an experience they will want to talk about and want to come back for again and again.
How can your narrow your niche? Or is your niche already making itself known to you?