Small business is exploding. There’s been an enormous and swift increase in the number of small businesses launching.
Much of this was fueled by the pandemic. As Forbes points out, much of this was brought on by the massive increase in unemployment experienced at the start of the pandemic.
That unemployment left many without a stable income. In an attempt to make up for that income, entrepreneurial people decided to start working for themselves.
As a result, there are tons of new businesses popping up. This is fantastic, as these businesses are creating new innovations and providing consumers with more options than ever.
But the flip side is that there’s a lot of market competition. With so many new businesses, it can be hard to get your brand noticed and expand your hold on the market.
That’s why niching is so important. This article explains what niching is and how you can use it to succeed in the marketplace.
What Is Niching?
A niche is a specific segment of a population that differentiates itself by having specific interests or characteristics that aren’t widespread.
As an example, people who are interested in foreign films are a niche within the film market. They are a small but specific segment of an otherwise very large market, with unique wants and needs.
Niches can be of varying sizes. Some niches are very large, while others are extremely granular.
Regardless of size, a niche has some common characteristics that set them apart from other people who share demographic information.
Niching refers to a business’ approach to marketing. A business is niching when they choose to narrow their focus on a niche within the market and try to provide that niche with the perfect product or service.
Using our prior example, a business would be niching if they chose to offer a foreign film streaming service. The service wouldn’t appeal to everyone in the market, but to those who really like foreign films, it would stand out as the perfect streaming service.
Why Is Niching Important?
Niching is important for small businesses in a variety of ways.
For one, niching helps you get your business noticed. With so much competition in today’s world, it can be difficult to stand out against the sea of alternatives.
When you niche, you connect with potential customers on a much more visceral level. You can position yourself as the perfect product for them, making them far likelier to choose you over your competition.
Additionally, niching helps you with your customer retention. When customers feel like your brand knows them and is genuinely in line with their lifestyle, they begin to trust in you.
This trust means they’ll be more likely to buy from you when you drop new products or when they need to resupply on previous purchases.
On the flip side, not niching is a big marketing mistake. If you don’t niche, you face a serious uphill battle.
You’ll have to create a marketing strategy strong enough to help your brand cut through potentially hundreds of competitors. This is challenging even if you have endless funds.
But most small businesses have limited budgets, meaning they need their marketing efforts to result in sales. That’s not likely to happen if you aren’t niching.
On top of that, your competition is probably niching themselves. This means taking a generic approach to marketing won’t have the same impact as your competition’s advertising.
For these reasons, it’s imperative that you learn your niche and target them with your marketing efforts.
If you’re ready to find your niche, there are a few questions you need to ask yourself.
First, what part of the market is underserved right now? If you can find a market segment that isn’t currently being provided for, you can step in and establish yourself there.
The second question you should ask is “what problem am I uniquely qualified to solve?” Leveraging your expertise to create a solution no one else will help you reach your niche, as you’ll have a unique product perfectly adapted to a problem consumers are facing.
Use these two questions to find your niche, then focus on marketing towards them. This will help you stand out, get your brand more attention, and ultimately, help your business grow.