If you are truly willing to win the long game finding your niche and sticking to it will yield great outputs, you find all the businesses around us are frequently looking to diversify and this may inspire you to do the same but it will cause more harm than the good it does.
Yes… yes… diversification is good but it has some limitations and rules to follow if you are just starting your business or half way and want to diversify you may lose out very important details that will kill your quality in the process. You can easily diversify and dominate the market once you have the strong base in your targeted niche market.
SO, WHAT IS NICHE?
in our case, in the business perspective “NICHE” is a marketplace.
For example, when we talk about Home appliances industry we can consider laundry, is a niche and it is specific to one particular area in the market.
WHY FIND A NICHE?
There are many advantages if you can find a niche of your own and go all into it.
- Finding your niche makes marketing and innovation easier.
- It gives you a sense clear direction and you can focus on what matter most in the early days.
- It presents you a great opportunity to find what your audience/ customers really need.
- Keeping it small by thinking big will save enormous resources such as time, energy and money.
- You will have a competitive advantage by understanding your ideal customer.
- You take calculated risks with this approach.
HOW TO FIND YOUR NICHE?
Now we know what is niche and why it is important for us, let us discuss how can we find or create niche markets.
Verify: Who are you?
Knowing who you really are as a human being can help you to know what can you do and what you will stand for in life.
“To know thyself is the beginning of wisdom” – Socrates
List out all your strengths, weaknesses, limitations, hobbies, interests, what and who you love, what drives you, what are you passionate about, what are the things you care the most think about everything why you do what you do and try to become much aware of yourself.
Analyse your Problems.
Write down the problems you face financially, emotionally, physically, love life and; other everyday challenges.
Observe your surroundings, do you find any problem which most people face even if it a small problem, Find as many as you can, write down all of them.
“To acquire knowledge, one must study; but to acquire wisdom, one must observe”.
– Marilyn Vos Savant
Define the industry.
With all the details you wrote down about who you are and what problems you have and all the problems you have observed around you.
Select the problems you would love to solve in the list that will match your interests, expertise, and problems you face and observe.
Define an ideal customer.
When you found the problem you want to solve, you need to find your audience that can get help with your solution, defining an ideal customer is not something you will sit in a room and plan, you need to get out there and ask people what would be better if you can bring a minimum viable offer.
Test your solution with the audience and that will help you iterate your product or service.
Select the niche.
This is the most important part where you select an entry point in the industry and start selling your offers. select 3 best ideas with a good solution and see which has the most demand and what can be sustainable and select the part of the market as your niche.
Case Study :
Jeff Bezos founded Amazon.com in 1994 and launched it online in 1995. The company began as an online bookstore named “Cadabra.com”, a name quickly abandoned for sounding like “cadaver”; while the largest brick-and-mortar bookstores and mail-order catalogs for books might offer 200,000 titles, an online bookstore could offer more. Bezos renamed the company “Amazon” after the world’s biggest river. Amazon.com soon diversified to product lines of VHS, DVD, music CDs, MP3 format, computer software, video games, electronics, apparel, furniture, food, toys, etc. Amazon has established separate websites in Canada, the United Kingdom, Germany, France, China, and Japan. It also provides global shipping to certain countries for some of its products.
Since 2000, Amazon’s logotype is an arrow leading from A to Z, representing the desire to sell many products.
Take away from the study:
It is always good to find small niche markets and own them before you plan to diversify.