The fewer resources you have, the more focused you need to be. This is the Importance of a niche market and it is the essence of the concept of strategy. Strategy is nothing but answering the question: “where will we focus our efforts?” By focusing your efforts, given your limited resources, you allow for two powerful effects.
First, you get to test whether your assumptions are correct, because a focused approach allows you to create a mini laboratory in which you can limit the number of variables to see what works, and what doesn’t. At Firejuice our focus is the entrepreneur. Every page of our website is aimed at the entrepreneur struggling with marketing and every offering we have is for the entrepreneur. It either works, or it doesn’t.
Secondly, if it works, it allows you to optimize your business and squeeze the efficiencies. You become better at servicing your market, the more focused you are. You also make it tougher for competitors to enter the market! Essentially you become the go-to solution for your niche.
One of the major temptations for entrepreneurs, especially those who come from a corporate background, is to try and act like they are a big company, even though they are small. There are a few places where this mistake shows up.
- One is with the business brand, as many “ex-corporate” entrepreneurs hide their own faces – their identity – on the business website, just like they were able to stay anonymous in their previous corporate life. This is a mistake because in a small business the identity of the owner is a key part of building trust with potential customers.
- Another area where the mistake is evident, is when it comes to focus. Ex-corporate entrepreneurs are notorious for wanting to sell everything to everyone, as if they have all the resources in the world – just like in a big corporate. Again, this is a mistake for the reasons listed in this blog. It is far better to focus and provide yourself the opportunity to learn and refine your approach.
Do yourself a favor and start to look out for the word “niche” as you do your normal business reading. You’ll be surprised how often it pops up! Companies that have a niche, that pursue a niche, that know what their niche is….it is this niche that gives them the best chance of success
The premise of marketing strategy is simple: segment your market, decide who to target, and position your brand to appeal to the target segment. You can’t do marketing without knowing your niche. You can hardly build a small business without focusing your efforts! Don’t underestimate the importance of a niche market!