What is a Niche and Why is it Important?

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If you’ve set up your own small business, or you’re in the process of doing so, you’ll probably have heard a great deal about niches and how important it is to carve out one of your own, but what exactly is this niche business all about?

What is It?

A niche is basically a very focused area of the market your business is operating in. In order to have a niche, you must specialize in a particular, targetable field of the market and do so in much more detail than the average mainstream business in your field.

Why It’s Important to Have a Niche

There are numerous reasons why it’s important to have a niche of your own in the business world, but here are some of the most compelling:

You Don’t Spread Yourself Too Thin

One of the biggest mistakes you can make as a budding entrepreneur is to spread yourself too thinly and try to take on more than you can handle. It’s easy to do this by trying to offer a very wide selection of products to cater to everyone, making it difficult for you to do any one thing well.

If, on the other hand, you focus on one particular thing, whether that’s SEO marketing for attorneys rather than SEO marketing for everyone, or selling Lenses for just Nikon cameras instead of all the cameras on the market, you can really get to grips with your niche. This will enable you to offer your customers and clients a much better service, that is also easier to manage.

It Makes Marketing Easier

When you’re super focused on doing one particular thing well or offering one kind of product only, it’s also easier to market your business to the right people. It is after all. A lot easier to identify customers who would be interested in marketing for attorneys than it is to narrow down your search for potential marketing clients out of the hundreds of thousands of businesses in operation, and of course, when it’s easier to identify the most interested parties, it’s a lot easier to make sales more quickly, efficiently and with a lower advertising bill, too!

You Can Become an Expert

In business, it always pays to be an expert in your field. If you are recognized as someone who really knows their onions, then more people in the field will respect your opinion and they will naturally start to gravitate towards your business. Obviously, it’s a lot easier to become an expert in a narrow field than a huge pond, which is why  finding a niche is so important for the average small business.

Less Competition

Of course, if you are able to find a very specific niche, you are not likely to have nearly as much competition as those individuals who are running less focused companies, which can often make it easier for your business to gain momentum in the early days, and help you to corner your specific market, so that you are never short of business – something that should be a primary aim of any company old or new, big or small.

Better Referral Rates

When you have a strong niche, your customers and clients will really get what you do and as a result they will feel better able to recommend you to others who are in need of the goods and services you provide. The fact that you are likely to be a lot more visible within your small corner of the field will help with this too.

Repeat Business

Repeat business is the holy grail for any company. It’s normally a lot easier to convince someone who has bought from you before to do so again, and when you’re working in a small niche where everything you do is aimed specifically at meeting the exact needs of the clients, it’s a lot easier to get that repeat business and build long-lasting, trusting business relationships.

The bottom line: Basically, having a niche means that you are a big fish in a small pond, rather than a small fish in a big pond, and this naturally has many advantages in terms of your visibility, ability to find good clients and how many sales you can make.

It isn’t always easy identifying a niche within your chosen field, but it is certainly worth taking the time to do so if you want to give your new venture the best possible chance of succeeding and thriving for many years to come.

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