4 steps to building a community that will make your business grow
What’s a niche and how do you find one? A niche is place where you feel comfortable, like you’ve found suitable place in your life or job. Think back to any of the countless stories about the new kid at school who feels like an outcast, but by the end, they have their group of friends and a sense of belonging. In ecology, “niche” also describes the role of an organism or species in its community: where it goes, what it eats, who eats it. Very rarely do two species fulfill the exact same niche at the same time.
But what does ecology have to do with your business?
In business, your niche refers to a business’s special market segment. It’s a subcategory of a greater industry, defined by price point, customer demographics, location, even quality level of the good or service. Through his work with over 10,000 clients Jay Abraham has worked with over 7,100 niche markets; he knows how vital finding your niche is to long-term business success, particularly when crafting your unique selling proposition. So how do you find your niche in a business setting? Here we’ll cover ways to uncover your niche, establish yourself there and then take your business to the next level.
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What’s your market niche?
Understanding how to find your business niche is a crucial part of differentiating yourself from your competition. Your niche is a vital part of your unique selling proposition and understanding your clients. Remember: if you try to appeal to everyone, you appeal to no one. Instead, focus on what makes your clients and product or service different from the others.
For example, according to the Association of Real Estate License Law Officials (ARELLO) there are about 2 million active real estate licensees in the United States. But within the massive real estate industry, there are countless niche markets: maybe an agent only sells to medical professionals in a large city, works with single family homes in a rural area, runs a full-service business with higher commission rates that covers every aspect of the process from listing to closing or helms a discount service with lower commission rates. All these are part of the larger real estate industry, but vary widely in terms of client types, cost, and location.
Knowing your niche means you can clearly tell potential clients what makes you different than the rest. This allows for a preemptive approach that deals with all the possible factors that prevent a client from making a choice or a purchase. Prove how you’ve overcome obstacles your competition doesn’t even acknowledge and you’re that much closer to gaining another client. Jay illustrates this idea with the example of his client Bradley, who trains investors in how to make money in real estate. This marketplace is also flooded with competition. But when asked how he differs from a well-known competitor, Bradley lays it out. “I approach your fate and financial path with a much greater commitment to getting you there quickly, easily, safely, enjoyably, and more predictably than any of my competitors do.” He does this by protecting clients’ downside better, multiplying the upside more and showing more ethical shortcuts, fixes and strategies than others providing a similar service.
How do you find your niche?
To find your niche, you need to understand what your business does (or can start doing) better than anyone else. Remember, when a person buys from you, they’re choosing to do so over three other possible options: 1) buying from your competition, 2) finding another way of solving their problem or 3) doing absolutely nothing. There’s a gap in the market in what already exists; maybe it’s what inspired you to start your business in the first place.
To find your niche, answer these questions: What makes you different than others in your field? Your ease of application? Location? Price point? Service? Speed? (If you’ve not yet figured out your unique selling proposition, working through that material will help you further refine your niche too). Who are your clients?
Again, get specific here. For example, your client isn’t just a person in their 30s–50s. That’s too generic. Instead drill down on gender, income level, location, values, interests plus what motivates them to buy. So maybe your client is a married woman with at least one child who cares about giving back to the community and wants to make sure she’s getting the best value for her money. Or maybe she’s a single woman who’s a recent college graduate and fervently cares about the working conditions of the people who make what she buys. Getting specific about your target market allows you to best focus on the people who will make your business grow: satisfied clients.
Once you find your niche, it’s time to get established
So you know your niche, now what? Ideally, within your niche, you are the only viable solution. You understand your market’s needs, dreams, hopes and problems better than anyone else. Your business has clear cut solutions that you clearly articulate. Since your clients share many of the same characteristics, you can really hone in on knowing them well and anticipating their needs. Here are three ways to help you establish your business’s presence in your niche:
1. Demonstrate expertise
One of Jay’s big drivers is to help others become preeminent, not just average, in their field. You can self-proclaim your expertise, then assume the mantle of defender of any un-served or undeserved market niche just as long as you can deliver on your positioning. Organic growth will come from people learning from you, whether via your blog, social media, interviews or in-person workshops or seminars.
2. Cater to your niche
Where are your ideal clients already gathered, both online and in the tangible world? Find them where they are and connect. Targeted marketing campaigns, specific landing pages, even signature social media channels can help you better connect to your niche market. Take Gary Vaynerchuk, who started making videos about wine enjoyment for the average person. Clients he met at his family’s modest liquor store were interested in and wanted to buy more expensive wines, but they didn’t know much about wine. For them, fine wine was for snobs. And they weren’t snobs. So he started vlogging about wine, catering to the underserved market of ordinary wine drinkers with irreverent, unconventional commentary. And that family business is now an over $50 million company.
3. Become part of your niche’s community
Tapping into the power of human connection will help you build your business’s position in your niche better than anything else. Maybe your community is a global one, connected via the internet, or maybe it’s a group of people in your town. No matter the scale, real, genuine engagement with your niche shows them you’re someone they can trust even as it’s an easy way to promote your business.
Take your market niche to the next level
Here’s where we get advanced. Once you’ve established your preeminence in one niche, there’s no reason to get stuck there. Find new markets while competitors stagnate. For example, you can build out to multiple niches, even have divisions of your business compete against the others. Perhaps you’ve built out your low-volume, upscale, high-profit market – what about finding a way to connect with bargain seekers with a high-volume, discount division? As you plan your next steps for business growth, think through these three questions:
✓ What niches can you target that your competitors don’t yet see or go after?
✓ What markets aren’t you in yet that you’d love to penetrate?
✓ Who does that market/niche already trust? Do you have any reasons for a strategic alliance with them?
Jay Abraham is a proven business leader and top executive coach in the United States, and a close friend of Tony Robbins. Jay has spent his entire career solving complex problems and fixing underperforming businesses. He has significantly increased the bottom lines of over 10,000 clients in more than 1,000 industries, and over 7,200 sub industries, worldwide. Jay has dealt with virtually every type of business scenario and issue. He has studied, and solved, almost every type of business question, challenge and opportunity. His principles can be the difference between mediocrity and a business that generates millions of dollars in additional revenue.
Know Yourself to Find Your Niche
Take Tony Robbins’ Leadership Style Quiz today to learn how to leverage your leadership style in your business’s niche.