Why Niches Work

What’s a niche?

The word “niche” comes from the French verb nicher “to nest.” Webster’s Collegiate Dictionary defines a niche as “a place, employment or activity for which a person is best fitted.” A business niche, then, is a commercial means of livelihood involving work that you are completely suited for, that you feel “at home” doing. Finding the right niche allows you to “live your real life” doing work you love.

Why don’t more businesses niche?

Unless you’re by nature a highly focused person, you’ve probably looked into a number of different ways to earn a living as an independent business owner. You can see the possibilities in quite a few of these business opportunities and hesitate to give up the chance of making extra income. But…what do you call yourself on your business card?

A niche helps you simplify your business.

Limiting your business to one thing doesn’t sound too exciting. You have varied interests, talents and skills and you want to engage in them, but having a business niche sounds like you’ll be doing the same thing day in and day out. That’s why creating the right niche is important.

Your ideal niche will make use of your skills and talents in an occupation for which you have a passion.

Committing yourself to becoming known for one thing means letting other business go. You may have sidelines you’ve been nurturing or paying clients who fall outside your niche. You might even have to change your business name so it stands for the “one thing” you’ve chosen to become known for.

Taking a stand takes courage.

9 Ways a Niche Can Boost Your Business Income

If you focus on work you love to do for people you enjoy serving, your work seems like play. Have you found that there is one aspect of your business that you enjoy so much that you’re happy to do it for free? That’s the kind of work you want to center your niche on.

Niches are often based on your area of expertise. If your area of expertise is also the work you love to do, you’ve probably spent a lot of time and money in educating yourself and in perfecting your skills. Building a business around a subject you’ve mastered gives you more confidence when taking your message to the marketplace. “Sideline” businesses don’t have the same impact, because they are not where your strengths lie.

People are more likely to trust the work of a small business specialist than a small business generalist. Prospects looking to purchase a product or service don’t want “okay.” They want the best they can afford. Achieving mastery in a specific area gives depth and focus to your business. If you’re a one-person operation, breadth just isn’t believable.

If you direct your marketing efforts repeatedly to the same group of people, you will become known more quickly. If you communicate a clear business focus to this same group, they are more likely to remember you when they have a need for your product or service.

When you “target” your marketing to a specific group, you no longer have to worry about marketing to the “universe” through generalized ads. Tailoring your marketing to people who already have a need for your product or service means you won’t waste money on marginal prospects. Your cost per lead is reduced.

People are happy to pay specialists more than they pay generalists. If you are known as an expert in your field, you can command higher fees. You will be worth these higher fees if you can solve a client’s problem more efficiently, quickly or conveniently than someone with less mastery.

If you’re the only person providing a highly specialized service, you can say so — loud and clear. Even after copycats enter your field, you can still advertise that you are the “original.” And because you had a head start, you will have captured a significant share of the market.

Once you decide to specialize in a specific area, you eliminate a number of competitors. If your competitors don’t provide the same service you do, they are more likely to refer clients who can best be served by your area of expertise. You can return the favor for those needing services outside your niche.

A successful business needs a clear purpose or sense of mission that makes it unique. In a home based business, it makes sense for the owner’s life mission to form the backbone of the business. Thus, business and personal life are integrated into one whole, creating a perfect fit between home and business. Fleshing out a niche around the owner’s mission puts a solid body on the business and gives meaning to the messages you communicate to the marketplace.

What makes a niche work?

(c) Copyright by Barbara Casey