Your Niche?

The word "niche" gets batted around a lot. If you have done any reading about running a small business, the word has undoubtedly cropped up. Every small business should have one, they say. What's unclear is exactly what having a niche means.

"Niche" literally means "nook" or, more descriptively, a corner. It's not large. In fact, it's a small, very specific place. And, all of your customers reside there.

Many new small business owners have a difficult time narrowing down their focus. Trying to sell a product or service to everyone is an easy trap to fall in to. Throwing precious advertising dollars into marketing campaigns and not targeting those who are the most likely buyers is a recipe for disaster.

Aspiring small business owners need to think about the following before going into business:

• What problem will my service or product solve for customers?
• Is there a need that is currently not being filled?
• How can I serve customers better than existing businesses?
• What will make my service or product more desirable than others?
• Given my unique products or services, is there enough demand for me to become successful?

Existing business owners may also benefit from adding a new niche product or service. Moving into areas that you currently don't serve can be a great way to increase revenue. The key is being aware. For example, a local competitor may have gone out of business. Is there a way to step in and make the competitor's customers your own? Why did customers use them instead of you? Can you add products or services to increase your base?

Remember - you don't need a bazillion customers, you just need enough. Making them happy and keeping them coming back is the best recipe for success.