(This post was originally a guest post I did for Wood Street’s blog)
It’s no secret having a niche is important in business these days, but it can be hard to identify the niche that will work best for you. Let’s take a look at a few characteristics that go into making the anatomy of a good niche.
By authentic, I mean you should be both knowledgeable about your niche and you should like it. If you are going to provide a service to a specific industry, you better know a lot about that industry and it should be of great interest to you because you are going to be spend a lot of time talking and working in that industry. This is why your passion is such driving force in choosing a niche.
Bigger companies can get away with forcing a niche a bit more than a small business because you, as the owner or head of marketing, are often the face of your business. People will know if you are forcing it and tune you out. It really needs to become an extension of yourself.
Easy to communicate.
It should not require a long and involved explanation for your niche, because often you will not have the chance to explain it. Many people’s first interaction with you and your product/service will be seeing it on a shelf or reading a social media profile. You want something that can be quickly and easily explained to your target audience both visually and in descriptions.
With a strong niche it is easier to know where to communicate your message. You are better able to zero in on your target audience allowing you to engage them with the tools they use most. The messaging itself also becomes more focused because you can keep it inline with the goal of your niche.
Has a market.
There has to be a market that your niche can serve or you won’t be in business very long. It is preferable that your market is passionate about you, your product/service and your niche. A loyal fan base is so important to a company when there are so many competing messages vying for their attention. This loyalty leads to repeat customers and referrals.
Your market doesn’t have to be huge, but it does need to support your financial goals. You define what success means to you and if your market can support that definition of success then you have a good niche. In addition to meeting those goals, you have to know if you are able to scale your operations as you grow. If you are afraid you may struggle, you may have to adjust your pricing to achieve your long term goals.
While simplified, this gives you a good overview of how to evaluate your company’s niche. If you are still trying to identify the best niche for your business, take a look at my latest free resource in the Marketing Roadhouse member library – Uncover Your Niche. It will teach you the benefits of having a niche, different types of niches, and how to use the 4Ps of marketing to uncover yours.