3 key reasons to niche your business

Niching your business can be a huge gamble but if it works then it can be a great asset to your business. To niche your business is to focus on a particular customer profile and tailor your product/services around this particular profile. Contrary to what most business owners think, niching your business can put you in the position of an expert. Your target customer is more likely to buy from you if you are an expert and have provided a product/service for many customers just like them.

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This blog will discuss 3 key reasons to niche your business and also give some potential negatives of niching your business.

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1. Position as an expert.

Becoming an expert in your field is a key reason to niche your business. Niching your business suggests you are an expert in your chosen area and are therefore able to offer a tailored service to customers within that area. By being an expert, you will be able to provide a higher quality service offering and able to understand particular pain-points your customers may have.

Without niching to a particular customer profile, it could come across that your business can be everything to everyone. It can be extremely difficult to work with multiple customer profiles and as such it may become difficult to deliver a high level of service. By niching your business, you position as an expert which will only attract the customers you truly enjoy working with.

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2. Attract customers that you enjoy working with.

Attracting customers that you truly enjoy working with is another key reason to niche your business. By attracting and working with your ideal client, your business becomes less of a chore and more of a hobby. After many successful years of working with your ideal customer profile, you will realise that you naturally go the extra mile to assist your customers. Niching your business can mean that you build long-lasting relationships with your customers.

A limiting factor here could be that by niching your business you are reducing and limiting your target market. Which to an extent is true, if you niche to a very particular type of customer. It may become harder to attract enough leads to keep your business flourishing, if you niche your business so it is definitely worth thinking about this extensively before going ahead.

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By attracting and working with your ideal client, your business becomes less of a chore and more of a hobby.

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3. Marketing becomes targeted.

Another major reason to niche your business is that you can tailor your marketing efforts to the customer profile you wish to attract. This means that you are being more intentional with your marketing budget and any inbound leads you get should be the type of customer you wish to work with. Online marketing has evolved in that you can now target a particular customer type and keep funding the adverts to better improve your return on investment.

As mentioned previously, the caveat here is that although marketing becomes more targeted, the target is much smaller than it could be. If you sell a product, for example, and attract a particular client who buys your product, will that same customer buy the same product again? Are you therefore limiting your market by niching your business? You need to ensure that our business model allows for repeat or recurring sales to customers.

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You can decide to niche your business from the outset, or grow your business first and then niche later. No matter what route you wish to go down, there are many benefits to niching our business, but at the same time there are a few negatives you must consider. If you are not sure what business you can start then head over to our blog 7 side hustles you can start right now.

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