“Defining your target market or niche is the single most important business decision you can make as an entrepreneur.” Saskia Gregory
Who is your customer? This seems like a simple question that any entrepreneur can answer. In reality, it is a question that has many layers that need to be unearthed to get the correct response. Dynamic entrepreneurs are thoughtful and clear about what they have to offer and who they will benefit from. However, they still experience challenges in making sure they meet the goals for their business. These challenges are often not because of the product or service they have to offer but from a lack of clarity with their target market.
The secret to lasting success is breaking down the core customer as much as possible and ensuring that what you have to offer meets their special and specific needs. This is known as defining your niche market. When an entrepreneur tries to cater to the overall market, you end up with a message that does not resonate with anyone. The niche you want to cater to should directly link with your ideal customer. My ideal customer for the services I offer is looking for and interested in what I have to offer, willing to pay upfront or in advance, believes my offering is the solution they have been looking for, and ready to engage now.
I can create a description that breaks down my customer by age, accomplishments, gender, location, and more with these characteristics. While I did experience some success before defining my niche, it was less intentional. Without a clear niche, you will work harder for longer, and your results will not be optimal. However, with a clear niche, you can achieve phenomenal success in a short amount of time.
How can I define my niche market?
These practical steps have made it easier for me to focus on a specialized area and differentiate my business from the competition. Furthermore, thinking through the niche helped me identify the market needs that were not being met and offer solutions that specifically spoke to those needs. Here is what you can do.
1. Identify your ideal customer
List down the characteristics of the customer that you would like to have. There is no need to be rational at this point. Put down everything that they should embody, even if it seems improbable. Once you have that list, think of one person you would love to offer your service. Why have you chosen this person? What about them matches the list you have created? By understanding their characteristics, behaviours and motivations, it will be easy to discern other people like them to approach and engage.
2. Identify a neglected market
There are many products and services out there to cater to all needs. Nonetheless, some markets are underserved and have huge potential. For example, you could be a tech specialist targeting growing businesses seeking digital solutions to improve efficiency. Narrow down your customer to a particular sector, age of customer and tech experience to see where you could be a good fit. Do some research by reading competitor reviews to determine where there is a lack of customer service or needs being unmet.
3. Be clear about your solution
Ensure that you are specific and clear about the solution that you are offering to your customers. Ask yourself why a customer would want what you are offering, and define the ideal outcome of choosing what you provide. Narrow your response down more, and rather than offer a solution for everyone with the problem, get specific. Finally, take some time to visualize the future that you want for your business and what that would look like if you consistently cater to the needs of your core offering.
Remember, always think of the problem you are looking to solve as you define your niche market. As a discerning entrepreneur, having a clear niche will make it possible for your teams to meet customer needs with ease. One major accomplishment that every entrepreneur should aim for is to create a successful venture that can run independently and still deliver results. Create the opportunity to grow and explore more ideas by setting your business on the right course.