What the heck is a niche? Webster’s Business Dictionary defines a niche as a “particular market or specialty area where a company finds it profitable to concentrate its efforts. Niche marketing offers a concentration of clients in an area of limited competition.”
This blog post is excerpted from my new book Become Your Own Boss in 12 Months; A Month-By-Month Guide to a
Business That Works which will be released on March 9, 2010 by Adams Media. Become Your Own Boss in 12 Months walks you step-by-step through the Emerson Planning System, which will reduce your learning curve as you start your business.
Most start-up entrepreneurs make the mistake of trying to go after too broad a market. They chase either too many clients or too many diverse industries. Even though they have limited time and resources they chase every ambulance going down the street that they think might have money in the back. After months of doing this, it is their business that is on life support in need of emergency care.
If you try to sell to anyone with money–you’re going to struggle in business. And you will not be known for anything. Consider this; lots of people sell shoes. Why should anyone buy them from you? Lots of people sell marketing consulting services. What makes your services so special? Anyone can print my business cards. What difference does it make to my business if I use your service? Do you have an answer for this in your business?
Nobody wants a generalist; they want a specialist–with experience in solving their specific business need. When a vendor has exactly what the client needs to fix their problem, the conversation moves past selling straight to budget, timeline and delivery. And the best thing about being a specialist is in most cases you can charge more for being one, too.
Some advantages of niche businesses are :
- It is so much easier to market your services when you know your customer.
- Running a Niche business removes a lot of the guess work in your marketing efforts.
- Industry circles are typically smaller so referrals (which is how 90% of business is done) can happen much more quickly.
But how do you choose a niche that’s right for you? A niche can be anywhere from under (or on) your nose (think Breathe Right strips for snorers), to cyberspace, where eBay and YouTube, among others, have generated millions. You might stumble on it. I spoke to a CPA friend of mine who only specializes in restaurant accounting.
Go With What You Know. Some popular niches include virtual call centers, personal training, beauty salons/spas, travel agencies, gyms, computer repair, technical/online support and business coaching.
Work for A Business Like The One You Plan To Start. If you work for a business like the one you plan to start, you may see a niche that your employer is ignoring.
Look for “You Must Be Kidding” Opportunities. The enterprising entrepreneur will find a pot of gold in everything from bathroom maintenance services, pest control, window washing, maintaining septic systems, to building a business pet sitting.
Turn a Hobby into a Money Machine. Stories abound about cookie makers (Famous Amos, Mrs. Fields, etc.) who went from the kitchen to national enterprises because they were tuned into America’s taste buds.
Invent Something. Mother Necessity is always looking for solutions to problems. The Butler Bag, PedEgg, plastic garbage bags, the Jet Ski, and WD-40 are just a few of the many products created by inventors who made a niche where none existed before.
Focusing on a niche market is a choice. Would you like fish in a big lake or a small lake just after the trout have been stocked for the fishing season? The smaller lake gives you far better odds of eating fish for dinner that same night.
Are there any other ways to fine a niche for a small business? I want to hear your experience.
WANT TO USE THIS ARTICLE IN YOUR EZINE, E-NEWSLETTER OR WEB SITE? You may, as long as you include this complete blurb with it:
Melinda Emerson “Smallbizlady” is a seasoned entrepreneur, professional speaker, and small business coach. Her areas of expertise include small business start-up, business development and social media marketing. Melinda hosts #Smallbizchat, a weekly talk show on Twitter. Melinda’s first book Become Your Own Boss in 12 months; A Month-by-Month Guide to Start a Business that Works is due out in March 2010 by Adams Media.
Melinda –
Great post. I coach a number of organizing consultants and I share the exact same philosophy. When I started my business as productivity and organization consultant a number of years ago, I was the jack of all trades. Any work that would come my way I was thirlled to have and would jump at it. Garages, kitchens, closets, home offices, businesses, you name it, I did it. I found that that process to be tiring and ineffective. I even took work (in my field) that I did not enjoy doing. I came to my senses early and started eliminating the services and types of work that I did not have a passion around. I then took extra continuing education in the area that I did love.
To your success!
Stephanie
Today I specialize in working with small businesses training, developing systems and processes for their time, paper information and electronic information. I love what I do every day. It is much easier for me to target my marketing. It is also much easier for people to give me referrals because they understand what I do and who I work with.
.-= Stephanie Calahan (@StephCalahan)´s last blog ..Major Meltdown in Time Management – Tips to Avoid it Happening To You =-.
Stephanie– Thank you for your comment. I am so glad this blog post was helpful to you. Developing a passion for your niche is important too.
To your business success,
Melinda
@smallbizlady