To Niche or Not To Niche, that is the question - Clarity Digital Marketing

To Niche or Not To Niche, that is the question

As a business owner, you’ve probably heard about niches time and time again. And you’ve more than likely heard about how you need to have a niche and how important it is for your business.

What Is A Niche?

Just in case you’re wondering what exactly a niche is, here’s a quick definition. A niche is a specific target audience with a specific shared interest or subject. For example:

  • A digital marketing business that works with mums that run their own business from home
  • A social media manager that works with non-profit social organisations
  • A food blogger that creates content for busy families
  • A web designer that work with creative solopreneurs

You see, there’s so many options to niche down in your business. But how can you do this?

Picking A Niche

Your target audience

Take some time to think about the people you want to work with.

You may want to work with an audience that is similar to you; may be male/female entrepreneurs of a similar age. Or perhaps their a group of people that you admire and like being around.

What are their struggles?

Figure out what your target audience is struggling with. One of the best ways to do this is to join some Facebook or LinkedIn groups where they hang out and see what are the most common questions people are asking. What challenges are they facing? What do they want most in life? Keep a note of the things that come up the most.

The solution

Now work out how you can help them with their problems and how you can offer this solution in your business.

Now you might be wondering ‘why would I bother to niche down when I can get loads of customers from a wide range of areas?’ If this is what you’re thinking keep reading!

The Pros Of Having A Niche

Niching down positions you as a specialist

Your target audience sees you as an expert that understands their struggles and problems, and they see a service that caters to them and only them! And if you do a great job, your customers are likely to spread the word to others in their field or with similar interests.

Higher rates

You are a specialist and this can be reflected in your prices. As an expert, rather than a generalist, you can command higher rates because customers know you’re the go-to person for their needs.

It works as a repellant

When you niche down you only attract the kinds of people you want to work with. Let’s be honest, there are plenty of potential customers or clients out there that we’d rather not have to deal with. If you want to work with small businesses you’re less likely to attract the larger corporate enterprises that you want to avoid!

It narrows down your market

Picking a niche helps you to have a clear understanding of who you want to attract to your business and how to go about doing this. This comes in handy for creating targeted marketing and sales strategies, thus saving you time, energy and money!

Less competition

I bet when you started your business you worried about your competition. How could you be seen among all the other business out there providing the same or similar services? They were up and running a lot longer than you and have a steady client base. Well, having a niche does mean that you’ll have less competition. Why? You are a specialist, catering to a specific group with a common interest. Why would they go to someone who has no understanding of what they’re about when they can go to you?

The Cons Of Having A Niche

Being too specific with your audience

One of the most common concerns about niching down being too specific and limiting yourself to who you will work with. What happens if you run out of customers? What will you do then? Well, while having a niche is important you need to make sure that you don’t back yourself into a corner!

Let’s look at one of the above niche business examples… Imagine this. You’re a digital marketer that works with mums who are also business owners. There are plenty of businesses like this out there in the world.

However, let’s say that you’ve decided that you only want to work with mums who run candle-making businesses in a certain geographical area. You are definitely restricing yourself there! Do you see what I’m getting at? It’s great to niche down but there’s a limit! So, with that in mind, you decide to work with mums with crafting and creative businesses throughout the country and maybe even internationally! Now you’ve defined your niche while at the same time, given yourself some leg room.

Being too specific with your services and content

You may feel that offering specific services to your target audience is too restricting. You have lots of interests, after all, and you want to offer other things. Going back to the section on ‘Picking A Niche’, try to define what else your target audience needs and how this fits in with what you love to do.

For example, the food blogger that focuses on busy families may also love planning and being organised. They decide to create printables, ebooks and courses on this. And the web designer working solopreneurs, who also loves to write, may start offering tips and tricks on writing for SEO.

However, while this is all well and good just remember that what you’re offering should be relevant to your business and your target audience.

In Conclusion…

There a many advantages to niching down your business. You’re an expert with an understanding of your audience’s biggest struggles! But can you be too specific?

Having a niche and having it succeed depends on your business and the kind of person you are. This all comes back to planning your business. My advice? Take some time and figure out who you want to work with and how you want to help them.

 

About the Author

Head of Marketing at Clarity Digital Marketing, Liam is passionate about helping small businesses reach and influence more customers using mostly online and occasionally offline marketing techniques.

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