I spent last month in Ubud, Bali where I was reminded of the importance of cultivating a niche market.
Getting your niche market right is critical when starting your business. Many people who I work with struggle with trying to figure out who their target audience is and I always advise them to not establish a business before their target audience is identified.
Once you have your target audience figured out, you will be able to design your service offering around that. You will know how to market to them, what to offer, how to build positive relationship to your brand and eventually earn their loyalty.
Targeting a specific audience, or niche marketing, is beneficial in key ways.
You will not wear yourself out trying to reach everybody.
By knowing who you are targeting, you will know the correct and easiest ways to reach your audience.
By targeting a specific audience, you will be able to focus on what you are really good at and serve people who are looking for exactly that.
Why waste your marketing budget on a massive group of people?
Instead, you could be targeting a smaller number with a majority of that audience interested in what you’re offering.
This is the exact kind of strategy I opted for when I established my consultancy. I focus on offering services that I’m exceptionally good at and target a specific kind of audience that is looking for these services and who we would enjoy working with.
You will stand out.
It will be easier for your target audience to understand what you do, and for you to establish yourself as an expert in a specific niche field. Because your target audience will be smaller, the word about your business will spread faster among audience members who you want to attract and potentially work with. In my case, the clients I work with often refer me to their counterparts and I get to work with similar clients who would appreciate my services.
The more targeted the audience, the less competition you have.
The greatest advantage of operating a niche business especially in the service industry is that you will have far fewer copycats to deal with.
Establishing your business as a niche one will relieve your marketing and positioning efforts because you will be attracting the “right” audience for your business. Your clients will be doing most of the marketing for you through referrals, and you will easily stand out in that small pond.
Niching down creates ample opportunity to build communities, meaningful relationships, eager clients, and amazing content. Finding your niche is hard, but it’s the choice that stands between those who are good at something, and those who are great.
Only by picking a niche and deliberately focusing your effort are you able to discover even deeper insights.