We live in a world that encourages multitasking at all levels. It is a thing of pride to describe oneself as Jack of all trades. It is alluring to want to do everything and be everywhere. We see what our business competitors, friends and colleagues do, and we want to do those things too. There is pressure on today’s entrepreneur because instead of enjoying and expanding what we have, we end up trying to juggle several balls, and losing a grip on all of them.
As a starter, you don’t need to hop on everything. Finding your place in the marketplace is better. You do not need to sell your perfume, clothes, or bags to everyone. A practical example of what we mean is if you sell perfumes, are you selling for women, children or men? If you make wears, are you making them for ladies, men or children? Are we saying you can’t sell for all the categories? No. But choosing a niche helps you focus on that audience and what appeals to them, and to be generally more effective.
What is a Niche?
A niche is a place or position that is particularly appropriate for somebody or something, especially because of being very specific and different from others. In business, Niche is a part of a larger market that may be defined by its unique needs, and identity that makes it different from the market at large. For instance, in an outsized market where everyone sells clothes, if you sell for just plus-sized women, that is a distinct segment. That is uniqueness and specialization right there.
Still wondering why you should do one thing when you can do all? Here are 5 reasons why Niching your business is important.
Customers respond positively to specialists brands
People believe in a business that has well-defined products. Odd as this might sound to you, customers are more confident in buying from a specialized vendor. When your customers know what you do exactly, it keeps them loyal, and as a result, they can easily make recommendations to friends. If you concentrate on a single product or group of products, clients will find it simpler to browse through you.
When they think of someone who sells women’s purses, they only think of you. They think of buying a gift box and they know it is you to reach out to. Niche helps you accomplish this. You also gain experience and are able to develop your own reliable network of users who are interested in that product line. Your brand will remain ingrained in their minds.
Clarity and uniqueness
When you niche, you recognize your target audience and their needs. Niche helps you focus on the needs of your audience, clearly identify your competitors and fish more ideas to meet your customer’s expectations. You will stop comparing and begin to see yourself meeting needs, solving problems and expanding, and establishing your uniqueness.
Cutting down unnecessary expenses
When you already know the people you are reaching and what to offer them, there are certain items that will not even make it into your budget. Niching helps you cut down on unnecessary expenses because you focus on the essentials needed to communicate your message. You will, thus, have funds to spend on the things that really matter. Targeting your ads and promotion campaigns will also become easier and cheaper.
Your marketing becomes more structured and effective
This is a follow-up to the previous point. You will be able to focus your promotion on the targeted audience. Think about running ads to a small group of people who are actively looking for a product or service like yours, you see it is easier to reach them than numerous people who have bigger demands and can get it anywhere. When you have a targeted and segmented audience, placing your brand in their faces will be easier and more convincing to buy from you. Your marketing campaigns become structured, effective and more affordable when niching.
You can make more money
Surprisingly, you actually have a chance to make more money when your business is niched and properly focused. Your finance is properly measured and because you have a small targeted audience, they are comfortable buying from you, referring you and marketing you, hence you reach more sales.
Look at your own business and target market and answer the questions; How clear is your definition of your target market? How specific is your product and solution?