Research Your New Local Small Business Idea
July 10, 2017
What Will Be Your New Small Business’s Brand?
August 7, 2017
The Riches are in the Niches of Your New Local Small Business
Before you start your new local small business, you want to consider carving out a niche. Since some of you might be wondering what a niche is, or as some others call it, a “NEECHE”, let’s take a moment to discuss what this is first.
A niche is where you carve out something that sets you apart from others. It might be the type of business you run or the something you specialize in.
You might have heard the saying, you want to niche down your business. Or maybe you’ve heard, “the riches are in the niches”. The theory is, the more you offer, the less you sell. And if you focus on doing one thing really well, you will make more money.
HOW TO NICHE DOWN YOUR BUSINESS
Let’s take an example of landscaping. There are landscapers that do everything from mowing, edging, trimming, rock, sod, trees, etc. Now, if someone wanted to niche this down even more, they would pick one thing and build a business around that.
Instead of offering everything someone would need from a landscaper, you might decide to specialize in palm tree trimming. Your business is all about helping folks with their palm trees. You skip all the other items a landscaper might offer.
NICHING OFFERS FOCUSED MARKETING
As you can see, a landscaper would need to market to everyone to try and pick up new leads, where as a palm tree trimmer would focus on those with the specific need of palm tree trimming.
Your first thought might be, yes, but the landscaper has a much bigger pool of potential customers. That is true. But they also have every other landscaper in town fighting for that same customer. Whereas the palm tree trimmer might be the only game in town therefore there is less competition.
If the marketing is focused on those potential customers with palm trees, and with no real competition, your odds of getting their business goes up. You will have a high conversion, since the marketing was focused on those needing the service.
Your competition is the jack of all trades landscaper. If you handle your pitch and advertising right, you will stand out to those who only want this one service. For example, you could create some great before and after pictures, and you can create some great buzz.
NICHE YOUR SERVICES TOO
Now, I want you to think about the business you want to start. Will you be a generalist or can you dive in a little deeper and focus on a specific piece of that business?
Now, another way you can niche your business is to still provide the full range of services, but maybe pull out one thing about the business and focus your advertising and “foot in the door” signature product or service on a particular niche.
For example, you will see mechanic’s do this with the $39.99 oil change. They pull out one service and focus on getting you in with this common, everyday need people have. They know you will need an oil change a few times a year, so what better way to get you pulled into the family if you will, and then when you need a mechanic for something else, you will check with them first.
Let’s take a look once again at the business you plan on starting, is there some service or product that you can highlight to be your money maker and lead magnet? A lead magnet is something that pulls people to your business.
As you can see, you can niche by either focusing on one specific piece of a business or by focusing your marketing on one specific thing that you offer within your business.
WHY YOU SHOULD NICHE
Now, you might be wondering why you want to niche? We already discussed that by focusing your energy on one thing you can really drive sales in that one area. Instead of trying to push everything you can now focus on the one thing.
Which allows you to create some buzz around what you do. You become the go-to girl or guy who offers X. It will help separate you out from the other potential competitors.
This really lets you focus your marketing & advertising dollars on this “one thing”. This can be a huge opportunity for you to leverage these dollars. Plus, even if you use the free advertising out there, you can build the reputation you want.
As you can see, by carving out a niche, you can set yourself and your business apart from the other early on. This could give you a great competitive advantage.
WHAT WILL BE YOUR NICHE?
So, as you start to think of the business you will start, you will want to put some thought into do you A) focus on one aspect of this business you plan on to start or B) think of the one service or product you will use as your lead magnet. What will you use to carve out your niche?
Niching can be a great competitive advantage over others and more importantly, let you hit the ground running by filling a need in the community quickly!
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