The notion of a business niche has evolved from mere jargon to a prevalent topic in today’s entrepreneurial discourse. You may have either attempted to identify your specific niche or remain comfortably entrenched in a broad spectrum, unwilling to refine your focus.
Through my interactions with small business owners, freelancers, and solopreneurs, it’s evident that many tend to shy away from the challenge of pinpointing a specific niche.
However, if you continue to maintain a general approach without narrowing your focus, you could be missing valuable business opportunities.
How to discover your business niche
Let’s explore several strategies to help you refine your focus—essentially identifying your business niche—ensuring your marketing and sales efforts yield more clients.
1. Who are the clientele of your niche business?
Who is poised to purchase your products or services? This is your chance to envision your “ideal client.” Who do you genuinely aspire to assist? Who stands to gain significantly from your expertise? These individuals should be your primary focus. Although their relatives and friends may also gain something, they are likely not the ones who will experience remarkable transformations because of your work.
Target individuals who can actively engage with the services you provide. This doesn’t necessitate hiking your prices exclusively for affluent clients—you can offer promotions, discounts, or even scholarships if desired. Nonetheless, the primary concentration of your time and resources should be on those capable of paying for your services and committed to achieving desired outcomes. Narrow down your target audience.
2. What do your customers genuinely desire?
What inquiries are these buyers making? If you already cater to a specific audience, comprehend their perspectives on their challenges. Business owners often attempt to sell to customers by centering on what they perceive as their issues, but the primary focus should be on understanding what customers are articulating about their struggles.
For instance, let’s say you run a business focused on nutritional goods within social selling. You may know that, with your products, clients typically lose weight, gain energy, sleep better, and enhance digestion. However, do most of your potential customers realize that their nutritional habits are the issue? Or do they think they merely require greater willpower regarding carbohydrates, a sleeping pill, or continuous antacid use? Likely, it’s the latter. Hence, presenting them with an abundance of information about improving their nutrition may not capture their attention.
Instead, tailor your marketing content, including social media updates, to resonate with the issues they face and how they perceive them. Refine your marketing approach.
Unsure about the true desires of your audience? Consider these methods:
- Segment newcomers to your mailing list. Ask a question when people subscribe to your emails to gauge their interests.
- Conduct a poll on social media. Platforms like Facebook offer built-in options for polling your audience.
- Send out an email survey. Make sure to provide a reward for completing a short questionnaire of 2-5 questions.
- Utilize a service like Survey Monkey or Typeform to create a multiple-choice questionnaire. This is efficient for larger lists or if you need assistance compiling responses.
- Set up a survey funnel. Ryan Levesque’s book Ask provides insight on how asking the right questions can guide individuals to your solutions.
3. What solution does your business provide?
What core solution are you emphasizing? I recall driving through a quaint Texas town and spotting a store named Auto Parts & Laundry. How do those services relate to one another?
Are you potentially confusing your prospects with your offerings? While you may have access to a wide range of products for sale, do you need to promote every single one? Or perhaps you possess diverse professional skills and offer various services to enhance your income potential. Is this truly the best allocation of your marketing resources?
This is where reviewing your past sales records becomes valuable. Analyze your sales from the previous year. What quantities were sold in each category? How frequently were these sales directly linked to your promotional efforts? If you tirelessly advertised new products on Facebook but found that customers initially approached you for unrelated items, you face an important decision.
Consider which products or services you can wholeheartedly support and pivot your focus toward delivering that overarching solution. Maintain clarity in your messaging. If you wish to provide additional items to your current clients, go ahead. However, keep your outreach to prospective clients focused. Refine your offerings.
By concentrating on these three aspects, you significantly increase your chances of attracting the right clientele for the right transactions.
Identifying your business niche when you possess diverse skills/interests
I don’t wish to boast, but I have numerous skills I excel at, which complicates my decision-making regarding what type of business to pursue. Can you assist?
This is what I’d describe as a favorable dilemma. Yet, I understand how challenging it can be when attempting to solidify a business strategy. Begin by revisiting the niche guidelines covered in this month’s article. The strategies for narrowing down your audience and product offerings apply to your situation too. Thoughtfully consider who you want to assist and how you can provide that help. Then, follow these steps:
- Compile a list of all your passions. This should encompass professional endeavors but also include hobbies or interests that may not seem like viable business ideas, such as coaching your child’s sports team or participating in charitable 5k events.
- Next, draft a list of your résumé items. This list should cover your professional skills, talents, and experiences. Ensure you break these down sufficiently to discern the actions you can perform and how you execute them.
- Ask yourself. How can I blend my skills with one of my passions? You might be pleasantly surprised by your findings if you remain open to exploring combinations.
Keep in mind: Many individuals mistakenly believe they must feel an overwhelming passion for their chosen field before embarking on a journey toward it. The reality is that numerous small business owners began with one niche and adjusted their focus as they progressed and uncovered their true passions.
Thus, my primary guidance is this: Cease overanalyzing and simply take a leap. Sometimes, we discover our intended path on our journey toward something entirely different.
Wishing you all the best in your selection!
