3 Reasons Why You Need to Define Your Niche
In today's blog post I want to discuss an important topic: Why you need to define your niche!
First off, what is a 'niche'? To put it simply, a niche is a distinct segment of a market. Whatever the market is for your business, the demographics will vary substantially.
For example, a business might target moms with young children because that is the audience they aim to serve. However within that demographic there are women within different age groups, religious backgrounds, occupations, incomes, interests, geographical locations, the list goes on! As you can see, it is almost impossible to serve everyone.
For this reason, it’s important to narrow down your target market into a specific group of people. Niche marketing involves concentrating all of the marketing efforts for your business on this small, but well-defined group of the population so you can better serve them and in return have a successful business.
But that isn't the only reason why you should narrow down your niche. Whether you are a business owner, blogger or freelancer, here are 3 beneficial reasons why you need to define your niche.
Reason 1: Do the Work You Love Most
No matter what industry you currently find yourself working in, there are a number of different subgenres within your market which need to be considered.
If you understand these groups well enough, then you can begin to offer a wider range of services and/or products which cater specifically to their needs and wants.
The advantage here is that the better you know your target market and the more specific their needs are, the better opportunity you have to meet them. You also face less competition, as most businesses tend to focus on the same, more generalized groups.
Narrowing down your offerings also allows you to focus your time and energy on the aspects of your business that you love most. This can be very useful for improving your business, since when you love what you do, you do it well and even produce your best work!
Reason 2: Build a Reputation as an Expert
Narrowing down your market can also be beneficial for your business in terms of its reputation and memorability among past or existing clients. This is because when you define your niche, you become known for a more specific type of product or service offering.
In the online world I see lots of web designers also offer graphic design, virtual assisting, social media management, and marketing services. I can see at first that these entrepreneurs want to help as many people as possible by offering an array of services, however they don't build a reputation as an expert web designer.
This is because businesses who try to tackle a larger, more generalized market demographic by offering a wider range of products or services are less likely to be remembered or recognized for any one thing. Customers will remember the single field or niche which you excel in and will be more likely to refer you when they know someone looking for that exact product or service.
If you spread yourself too thin by taking on a multitude of tasks or business avenues at once, then you are less likely to succeed in all areas. So instead devote all of your time and energy to a specific area of your business, and you will also benefit by further refining your skill set within that discipline.
Reason 3: Easier to Form Industry Relationships
Narrowing down and defining your niche can also help you to network and collaborate with other similar businesses. When you focus on a certain niche in your industry instead of offering everything under the sun, it is a lot easier to reach out to others in your field in order to form partnerships.
A part of the reason why this works is because it prevents other businesses from seeing and treating you as their competitor. By narrowing down your offerings, your business is more likely to complement other businesses with different yet related offerings, rather than creating competition by offering all the same things within the same market segment.
A web designer that only offer web design services can now partner or refer work to marketers, social media managers, virtual assistants and vice versa. Most importantly, both sides will be doing what they love most and excel at! This makes it a win-win situation for both parties.
Maybe it's time to do some work on your business and rethink your niche in your industry! If that's the case, download my free brand questionnaire to help define your brand direction. (I use this will all my clients before planning their photo shoot or video!)