Whatever market you are in, you’ll usually find the most successful businesses are the ones that don’t try to be something for everyone.
One of the keys to success and standing out as the authority in your market is deciding the right niche.
At first glance, it may seem like offering a product or service that appeals to a wide range of people will generate more sales than one geared toward a smaller group. But the fact is this concept rarely pans out.
Trying to satisfy everyone leads to all sorts of problems:
- Uncertainty over business strategy makes decisions difficult.
- Inability to stand out makes it harder to attract customers.
- Lack of a clear reputation gives people no reason to be loyal.
- Marketing campaigns are inconsistent – so less effective.
Yet most businesses seem to follow the approach of trying to satisfy everyone.
So perhaps it’s not surprising that only a handful of businesses last more than five years.
But the world is changing fast. The Internet is affecting the way people think and buy – even if your business isn’t online.
People increasingly realize they can find someone who meets their needs exactly in virtually any field.
The truth is: you stand a better chance of becoming an acknowledged leader in a more targeted niche than in a larger, broad field.
The good news is that, whatever market you are in, there is something special about your business, which means there is a niche just for you.
No matter how ordinary you think your business may be, there is enormous potential under the surface that a strong positioning will unleash.
The key to becoming the authority is unlocking that potential by deciding the right niche.
Deciding the right niche
The simplest way to define a niche is that it is a group of people (buyers and potential buyers) who have something in common – such as where they live, hobbies, political views or health.
The secret of finding a successful marketing niche is that it should be small enough to dominate and large enough to support a successful business.
Think Head & Shoulders shampoo. It focused on people with dandruff instead of competing with all other shampoos and came to dominate that market. If it had sought to cater to everyone, it would probably not have been so successful.
Having a clear niche means being able to identify exactly who your customers are and what they have in common.
But having the right niche isn’t just about finding a group of people with something in common.
7 keys to deciding the right niche
Here are 7 keys to deciding the right niche:
- Reachable market: If you want to sell them something, you need to be able to identify them and contact them.
- Recognizable want: People will generally spend more money on things they want rather than things they need.
- Identifiable gap: You need to identify a part of the niche that is not currently being served well and where you can offer something better.
- Good fit with your strengths: It will be easier to dominate a niche if it suits your personal or business strengths.
- Proven market: The best markets usually have some existing competition so that there are proven buyers.
- Adequate size: There should be enough profit potential, opportunities for repeat sales and prospects to build long-term relationships.
- Able and willing to spend money: Customers should have already shown they will buy your type of product or service.
Specialize and with laser-like focus, you will position your service correctly in your prospects’ minds and you will be seen as the authority in your market so you dominate your niche.