What is a niche?
If you’re just starting out on your entrepreneurial journey, then you may have already been told to “find your niche.” A niche is a smaller and more specific type of market with a target audience in mind. Finding your niche is important as it enables you to develop an extensive marketing plan aimed at customers who align with your work. Sometimes, we can have so many big ideas and by narrowing them down we can build a brand that people can connect with.
When choosing a niche, you’ll want to find something that aligns with your own passions and experience. If you work within a broad field, finding a niche can secure clients and set you apart from the rest. People tend to trust professionals who specialize in a specific field rather than those who do a bit of everything. For example, someone working in the coaching industry may choose to focus on relationship coaching, financial coaching, health and wellness, or life coaching.
Perhaps you already have a niche and just need a little help to finesse it. Maybe you are completely stuck and have no idea where to begin. To help you figure it out, take a look at my four-step guide on how to find your niche in business.
What are your strengths, expertise and passions?
A good niche will enhance your own expertise so that you can provide a reliable and trustworthy service. Choosing something you truly care about will make it easier to invest time and effort into it. A lack of commitment and experience are some of the most common reasons why many entrepreneurs fail. It is also far easier to create content about something you love rather than something you have little interest in.
You’ll also want to identify your strengths and weaknesses. Think about what skills come easily to you and the qualifications you have. If you are questioning whether you are experienced enough, undertake some research to find out what it is you need. If you are still struggling to find something, go back to basics and think about what you enjoy doing. Perhaps there is something in particular that people are always asking you to do. Could that be your niche?
In our free masterclass, How to Build a Successful Online Business that Allows You to Travel the World, we go through exercises so you know exactly what is suited for you to move forward with!
Look at the competition & understand the difference between niche and no audience
When you’re setting up any business, it’s important to thoroughly understand your market. I can’t emphasize this enough. Dedicate some time to research the market, including its key competitors. A simple google or social media search is enough to get you started but you may also want to use a keyword search tool for a more in-depth look.
Once you have an idea of the competition, it’s important to identify the demand. How much competition is actually out there and what is the engagement like on their social media pages? Avoid saturated markets (where the market no longer shows a demand for a particular product). These markets tend to have too much competition and the trajectory for the product stagnates.
Be careful to understand the difference between a niche market and a market with no demand. If you find that no one else is doing it, it’s important to find out why. While you could have found a gap in the market, it could also be that there is no demand for this particular offer. Niches with no demand should be avoided at all costs as you will struggle to build an audience.
Define and know your audience/niche and its profitability
Now that you’ve got a taste for the competition, you’ll want to get to know your audience. Again, it takes time to define your audience but it will all be worth it in the long term. Identify the customer demographics, their values, interests and location. Then, you’ll want to understand their problem and what it is they need. If you know why they are struggling to get it, you can offer the solution. Once you have a solution for the problem, you will be well on your way to setting up a concise business plan and an outstanding marketing campaign.
When you’re trying to connect with your target audience, you’ll want to attract people who share the same values. Identify whether or not they already buy from someone else and determine how you will encourage them to use your service instead. Once you know your target audience well, take a look at similar products and services in order to get a better understanding of the going rate. This will help you to determine your own prices and figure out how profitable your business could become.
Test your product/service
Now that you have chosen a niche and understand the market and target audience, it’s time to test it out. Start by creating a simple website or landing page so that people can find you. Next, you’ll want to reach out to your target audience by offering free trials or samples. This way, you’ll get a better idea of whether or not people will be interested in investing their money into your service.
When you’re first starting out, it’s essential that you remain flexible with your idea. Be ready to innovate and adapt to meet changing demands. Connect with your audience so that you can stay up to date with the trends. If you find that you don’t get as much traction as you thought, don’t panic. Part of being an entrepreneur is fixing problems and finding solutions. Use it as a learning curve, take a step back and look at where you can improve.
In summary, excel in one thing, don’t just be average
It goes without saying that finding your own niche is essential to building your business. Remember that it’s far more beneficial to excel in one thing rather than providing an average service in lots of different things. People tend to invest in products and services because they value experience and expertise. Take time to find the right niche for you and get to know your audience. Once you’ve got this, you can use it to develop your own business plan and enhance your marketing.