A niche market can be thought of as a narrowly defined group of potential customers - usually a portion of a larger target market. For example, a target market is working women, but a niche market is working women with kids at home, or working women in executive positions, or working women in the financial sector.
As a small business owner, you usually do not have the money, resources and time to market to a larger target market. You need to focus your marketing efforts on those people most likely to buy what you offer.
Think of narrowing your niche as simply positioning yourself more closely to the people or companies who could benefit most from your services.
Many of us like to believe that the number of people who want and need our product or service has no limit. Also, most of us truly want to help as many people as possible and so therefore believe we almost have an obligation to let everyone know about what we offer.
But the truth of the matter is if a small business tries to market to everyone, they'll eventually lose money and quite possibly go out of business.
I know it seems to go against common sense that we make more money and have more success when we limit the scope of who we market to. However, it is true and its been proven over and over again by very successful small businesses.
There are many reasons why it makes good business and marketing sense to have a niche market:
• you can focus your marketing efforts and not dilute them by trying to appeal to everyone
• it allows you to stand out as an expert in your niche which makes people come to you
• you attract significantly more business
• you have a natural competitive advantage because you can dominate your niche
• your marketing materials and communications are more targeted and therefore more effective
• people more easily refer business to you as they have a very clear idea of who you appeal to
• you can easily determine what opportunities to say yes to and which ones to pass on
• your creativity and strengths get to shine through
• makes it easy to find suitable strategic partners and joint ventures
• you spend less money on getting your message out there because you're not wasting time and resources on talking to people who aren't
interested in what you have
By taking the time (and the deep breath!) to narrow down your target group into a niche market that your company, products and services are best suited to serving, you'll be making a huge investment in a successful future.
About the Author: Tracey D’Aviero is a Virtual Assistant Coach, Trainer, Speaker and Author. After operating a busy VA business of her own since 1996, Tracey began teaching others to run their VA businesses in 2010 through Your VA Mentor. In 2016 she purchased the CAVA and GAVA VA associations and now teaches and coaches VAs exclusively. She has a vast amount of experience working in a many different industries which helps her to offer her students and coaching clients a unique perspective and sound advice. She is a proud advocate of the Virtual Assistant industry. Learn more about Tracey’s journey in the VA industry here.