A niche in a market is a specific area denoting or relating to products, services, or interests that appeal to a small, specialized section of the population.
There is a lot of discussions which is going on whether to select a specific targeted audience or to diversify in an industry in your business, whatever the reasons are it depends on people and the situations they are.
I would like to discuss all the important points, just have a glance so that you can come to your own conclusion and decide what to do.
Why to Niche?
- The specific market area selection gives you an added advantage as you can operate and approach your audience easily.
- It helps you to use all your resources at one place where you can easily get good returns for your efforts.
- If you are trying to start a business or having difficulties to develop your startup, finding a niche is the best thing you can do.
- Finding and focusing on a niche initially can help you to make decisions faster & concentrating all your energy on a single market area will make your offers much more attractive for your prospective customers.
- You have fewer competitors when you select an extreme niche.
- Eliminates mess and stress in the initial stages.
- You don’t need a huge team to start.
- A well-established niche can help in rapid diversification.
- It is good for small businesses and established startups which are successful in a niche already to diversify and grow.
- As you can’t operate everything on your own when you have many products and services it is less stressful only if you have operational business systems to manage everything in your absence.
- You need teams for each section of your business.
- Creating many niches for your products and services one after the other in a company can lead to an exponential growth.
- The competition is very high if you diversify too early but by selecting many niches in the same industry and tackling one at a time can eliminate the competition.
“Your Niche Is Where You Start, Not Where You Finish”
When should you stop being in a niche market and diversify?
After sticking to a niche for a long time and when your business has grown to an extent. You can start bringing in new products and services based on the same industry, which might be useful for your existing customers.
Remember, your customers are always right but you need to give them different opportunities so that they can test your new products /prototypes and give valuable feedback.
Take Away :
It is always good to start a business by selecting a niche, avoid the temptation to be everything for everyone that will never happen, instead dominate in a niche and then start with another niche market by combining them all it will later form a diversified organization, this is the best way that can help you to diversify.