It may feel counterintuitive to limit your audience as a new business. So why should you own your niche as an entrepreneur? First let’s start with what a business niche is. It’s a place in the market within a specific area of marketing that has its own demands, pain points, audience and products (or solutions).
By finding a niche you’re offering a unique solution to a pain point your customers are experiencing. This helps you to thrive by reducing your number of direct competitors. By being too broad in your offering you run the risk of not proving any solution at all. You’ll also be competing with too many other businesses, which makes it harder to excel. So how do you define your unique value proposition to own your niche as an entrepreneur?
Defining your Unique Value Proposition
A UVP is a statement that clearly defines your service or product to your defined audience. A USP should include:
- Your target market; e.g. Safety conscious young professionals in the medium income bracket.
- What your service is: A ride sharing app
- What makes your service unique: e.g. Extra safety features
- Define what your company stands for: convenience, less environmental impact and safety
Then it’s time to craft your statement and share it with the world, so for example:
SafeDrive is a ride-sharing app that offers heightened safety and verification features for professionals to get to work comfortably and affordably.
Find and exploit your speciality
Another reason to own your niche as an entrepreneur is to become an expert in that area.
By defining exactly what you offer you can pivot on your knowledge, unique skills and credibility. While you absolutely can take on clients outside of that scope, prioritising and selecting your clients allows you to manage your time.
For example, a business coach is starting an online business and wants to attract their first customers. Their background is in education, so they decide to first market themselves to teachers also looking to start an online business. In this way they are able to pivot their previous experience and expertise. To take it a step further, they could further define their niche to English, ESL or Mathematics, for example.
By finding clients who are looking for exactly what you’re offering, you increase your chances of client satisfaction. Once established you can springboard off that success to find new clients.
How to identify a niche market
Now that we know why it’s important to own your niche as an entrepreneur, HOW do you go about doing this?
Make sure they are accessible
When identifying your market, they must be within realistic reach. While you may have a brilliant business idea, if you can’t actually own your niche as an entrepreneur you’re probably not going to get very far. For example you may come up with a fantastic solution for slippery roads in Iceland, but if you live in South East Asia, you might have a tough time implementing your idea.
Find a neglected market
Find a market that doesn’t already have too many businesses vying for the action. A market that has fewer solutions to its needs is more likely to jump at the opportunity to use your product. You’re also more likely to have an engaged audience.
Make sure its sizeable
And lastly, make sure your market is sizeable. While we certainly want to narrow down your niche, we don’t want it to be too small. There needs to be enough people to make your business viable. Furthermore make sure you are scalable within your market. As demand grows, will you be able to meet it or will you be restricted by supply and manufacturing, for example.
If you’re still unsure of how to go about this, it might be helpful to hire a marketing expert. You can find marketing talent that works for your business on Nomad Now. Just sign-up today, and start searching.