Why should you find your own niche in business?
You have probably heard that you should, but does it really matter if you don’t? Does it really matter if your business is the same as others in your particular industry?
Well, yes, it does matter. If you can find your own business niche – one rarely touched by others – your business will benefit as a consequence.
#1: You will stand out from others on the market
Why should somebody buy from you? If you aren’t doing anything markedly different from your competition, you are going to have a difficult time in the marketplace. Sure, you could sell your product for less, but that could ruin your profit margin.
And yes, you could include the occasional freebie with your product, but your rivals could easily do the same. Instead, you need to have your own USP (unique selling point), as your potential customers will take greater notice.
It could be the ingredients you use in your product, as taking this example of red soap sold to tattooists, you could stand out by using purely natural and non-toxic ingredients in the items you sold.
You might also use sustainable materials in the manufacturing process of your product, as is the case with these eco-friendly brands. Such examples are attractive to the clients and consumers because of the green and safety measures they have taken, and so they will stand out against those companies selling similar products but who haven’t taken similar measures to create a sustainable niche.
#2: You will attract unique customers
Think about those customers who are gluten-intolerant. Think about those customers who don’t eat meat. There are thousands of foodstuffs on the market that won’t be bought by them, but there are those specialist food companies that will attract these customers because they are tailoring their products to meet their needs.
Just take a look at these vegan meat brands, for example. So, if you were to set up a food-related business, consider appealing to specific customers instead of to the mass market. While selling to the many might seem the logical sense, in actuality, it makes better business sense to narrow down your market as there will be less competition.
You will then gain unique customers who will turn to you because they can’t find what they need in many other places, and you will continue to make a profit from them if other businesses don’t follow what you are doing.
#3: You might find it easier to raise money
When trying to raise capital for your business, a potential investor might lose interest in your business idea if it was too similar to others on the market. They might question the viability of your product on the market, and decide against investing in your company.
However, if your proposal was geared towards a particular market, and so long as you had researched the needs of the market in question, the investor might sit up and take notice of what you intended to sell. They would see that you had less competition, and they might be excited by your innovation.
You need only look at TV shows such as Dragon’s Den or Shark Tank, where many aspiring business people are turned down by the show’s investors because they are offering nothing new, so try to find that angle in business that will excite the people you turn to when needing money.
So, think about your business, and compare it to others on the market. What could you do differently? What niche market could you sell to? You might experience greater success if you can do something that differentiates you from your nearest rivals.