We have all been there. We are probably still there, struggling to identify a niche for our side hustle, small business or start up. There are times when we even wonder why a niche is important for business. Because we, in this internet world, know A LOT. And with more knowledge and experience, we might think that our business services should be as broad as possible. Because that would lead our business towards the maximum spectrum of population. No?
Let’s assume you are the customer. You want to buy shoes. You head for shopping and end up near two shops. Shop One sells anything and everything, including shoes. Shop Two sells only shoes. Which one would you step in? It would be Shop Two, in most likelihood. Because we, as a customer intrinsically believe that the shop that caters to a specific niche will provide better choices and quality.
Now, let’s assume you are the Shoe Seller. As a shop owner, you would agree over time that “If you try to please everyone, you will please no one”. Not only is it hard to satisfy a wide range of audience, it is also tough to beat the cut throat competition in every industry. It is therefore imperative to minimize competition by drilling down the niche. By narrowing down your business niche, you will be able to focus better on the quality of the products/services and satisfying the set of audiences under your market niche by providing more value. This also helps in analyzing the market and expansion of the business in the long run.
That is why a market niche is important, both for customers and business owners.
Knowing the disadvantages of choosing a broader market niche would also better convince us as to why a narrowed down niche is super important for the business to grow.
If you choose a broader niche:
-> You have no idea who your customers are -> Not knowing who your customers are means that you do not know what value to provide them with
-> It is hard to define the scope of the project
-> It becomes a lot more difficult to expand the business in future
In our next post, we will discuss how to choose the right niche for your side hustle or small business.
Have you ever been indecisive about choosing the right business niche? What difficulties are you facing in coming up with niche ideas? Share your views in the comments section below, or head to the Forum section to begin a thought provoking discussion.