Many times we as businesspeople focus on the big markets. I.e. we focus on being all things to all people, like Walmart is for shopping or Microsoft is for computer software. But this is probably the worst thing you can do as a business owner.
The key is to find your niche that makes you competitive in the industry.
Niche markets can capture the hearts and pockets of a consumer, not only the massive players. Niche markets stand out because they focus on specific and unique products. The larger competitors will feel the market is too small and will decide to forego pursuing business there.
An example of this is eBay as it has been the main auction site where you can get almost anything, but there are plenty of other more “niche” sites that not only survive but thrive, like Liquidation, Bonanza, EquifyAuctions.com and Saleroom. All of these sites get plenty of visitors, traffic and most of all, sales.
You see, this is where small business owners can take advantage and become a big fish in a small pond. The platforms for niche businesses are ever-growing because of the high availability of resources and target audiences reached through advertising methods like Facebook Business.
The Top Ways to Make Your Business a “Niche” Business
If you are looking to create a name for you and your small business, here are a few ways that can help you earn big bucks by serving a small market.
1. Create a Simple Service
A niche business is very specific in nature. A simple service is a surefire way that you as a business owner can cater to the exact needs of your target audience. For instance, above you can check out Equify Auctions; the site is about auctions that sell big equipment like farm equipment and construction equipment. This is a category that eBay never competes on because the equipment is simply too large and can’t just be sent through the mail.
There are some questions that you should be able to answer if you are to create a similar simple service for your customers.
Who is your target audience?
What could make your business stand out?
Is your competition doing it or if they are doing it, how can you do it more specifically for the customer?
The business should be unique enough to have its own brand name, specialized features and expertise.
The main goal here is to maintain focus at all times. Thus, do not get distracted by what the competition is offering. Compete on what makes you unique.
2. Craft Your Own Space in the Niche Market
Maybe you don’t have something that makes you unique right now. In this case, you should go looking and see if you can find a neglected and underserved niche. The market should be relatively small with less competition.
Specializing in this underserved market could be the key to kick-starting your business. This means you need to have a better understanding of the customer base and how you can satisfy them. Therefore, you need to connect with them at a more personal level.
Your marketing campaign will be cost-effective since you do not have to spend a lot on testing and market research. Further, your customers can help you market your business as long as they remain loyal.
3. Don’t Compete on Price
If the only difference between you and your competition is price, then buyers will always go with the cheapest price. As a business owner, if you tackle a niche, you will no longer have to give your customers the cheapest price because no one else will give them exactly what they are looking for. Custom solutions always command a higher price than generic ones.
4. Be Distinctive and Relevant
Always seize the chance to portray why your business is the best in your chosen niche. Ensure that you stand out, especially where there are large competitors.
In this case, a singularly crafted business is the smartest route to take. A competitor might describe their business as a “multi-service shop”. For example, you are in the car repair business and lets say your competition says they deal in all makes and models of cars. You can mention them and say they are a jack of all cars but you are the Ace Of Ferraris (the model you are hyper-focused on).
You might be surprised at how customers are intrigued with your specialized craftsmanship framed this way and not only that, but also by how much more money is to be made by doing this.
