There are a few big businesses out there that have their fingers in every pie. However, you can’t expect to launch your very first business and compete with these corporations. In order to have a successful business, you need to have a honed niche in the market you can occupy. Jump in with a lack of focus, and all kinds of problems can spring up. Here’s why having a niche is so important.
First of all, establishing yourself in a niche will mitigate the risk of spreading your resources too thin. You might think that making everybody your target audience is the best way to gain sales. If you try and make your business everyone’s first choice for everything, then you’ll be biting off far more than you can chew.
This is especially true if you’re a sole trader or the head of a small start-up. If you target a smaller pool of customers and clients, you’ll find it much easier to identify what they want, and find easier methods of giving it to them. Marketing is all about understanding your ideal customer, and this will be much easier within a niche.
Image from Pixabay
Appealing to your target market’s emotions will also become a lot easier once you’ve established yourself in a niche market. It’s been shown that when people form opinions on brands, it’s far more an emotional decision than a logical one. This is an important factor to exploit if you want your business to be successful. Take a business like Chemglass for example. The clients for this business will want a brand that makes them feel reassured in their professionalism and modernity. With brands like Asos, on the other hand, a certain relaxed playfulness is more fitting.
Again, when you focus all your marketing on a specific niche, it will become much easier to figure out how to appeal to them emotionally. If you try to form a brand that appeals to absolutely everyone’s emotions, you’ll be setting yourself up to fail.
Finally, having a niche will make the process of growing your business a lot smoother. When you start off, you’ll probably have a single, narrow focus. However, you don’t have to remain restricted to one niche. When you do expand into other areas though, it’s good to have more than enough resources at your disposal. You’ll need to pay for new stock, research and marketing streams, all the while managing your first business. to be honest, you’ll more or less be creating a whole new brand from the ground up.
Once you’ve done this the first time round however, the second will become a lot easier to manage. It’s a common misconception that sticking to a niche stumps a business’s growth. In fact, it’s usually even easier to expand into a fresh niche once you’ve mastered the first.
If you thought that finding a niche wasn’t all that important, I hope this post has changed your mind! Start your business off with a solid, focussed niche, and all your work in future will go much more smoothly.
Featured image from Wikimedia