Before going into the topic, let’s look at what is a niche market? It refers to a group of customers who has a unique need but often overlooked or couldn’t fulfill by large businesses. Why finding a niche market is important for home-based business because this will give you the marketing edge and is the first step toward a successful and profitable business. You need to know who your target customers are so that you can focus your energy, time and marketing for their needs precisely.
It is a mistake to think that your product or service is meant for everyone as everybody needs it. There was a saying when “it is for everyone, it is for no one”. I made the same mistake before for my other business thinking that if I cast my net wider, I should be able to reach out more customers and make more profit. Initially, my web consultancy business was targeting at small businesses but later I thought if I could also sell my services to corporate companies, I should be able to make more sales but I was wrong. There were so many web consultancy companies out there that the customers were only interested in my prices and nothing else. There was no chance for me to prove my expertise and experience. The lesson learned was it is better to be everything to someone than something to everyone. Never try to be a generalist and fulfill everything, you will find yourself facing a lot of competitions and you will have to try very hard to market yourself instead of focusing on your talent and expertise. Offer your customers your unique service or product and quality not the pricing.
If your target market is targeting at “everybody market”, try to break it into a “somebody market”, for example if you are offering graphic design services to small business, try to break down the small business into specific industry then into specific operators such as from a F&B industry to restaurants operators. From the restaurants, you can further break down into specific cuisine like Western, Asian or European. But make sure there is sufficient size and growth potential so that you can profit from this niche market. Most importantly, they have money to spend and pay you.
Once you become specialized in one niche market, you are intimately familiar with the market needs and problems; you can then start offering niche product or service variety; that is either to increase its breadth or depth where your competition cannot offer. This is a good way to beat your competitors as unique selling proposition (USP) is hard to replicate and you can use this strategy to position yourself against your competitors and dominate the niche market.
By focusing on a specific niche market also helps in creating precise marketing messages easily. We know that customers do not respond well to general messages so when crafting marketing message that contains their lingo or languages, you will find that your customers respond far faster and frequently. At the same time, knowing your customers’ lingo also helps in your website keyword research and planning. Knowing what type of keyword phrases your customers are searching is important to attract quality traffic to your website. In addition, knowing related keyword phrases that they used is equally important as it gives you a good idea of what else your customers are looking for and how often they want it. Use keyword research tool such as keyword elite software to find out more related keywords that could bring you more sales. It’s also an excellent tool to reduce your advertising cost if you are planning your PPC ad, you will know which exact money-making keyword to target to generate leads.
With all the above said, you will realize that why finding a niche market is therefore important while planning your business; the last thing you want is not to waste your precious time and energy focusing on the wrong market and customers. As this is one of the vital steps to a successful home-based business, it’s worth spending some time to research and identify your niche market before starting your home-based business.