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Choosing the right niche: Not Too Broad not Too Narrow or Both?

Written by PracticeB

July 11, 2023

If you are reading this I am going to assume that you know that choosing a niche is an important step in starting a business.

But just putting it out there that it’s not “the” most important step and entrepreneurs (including myself) spend way too much time obsessing over choosing the right niche.

It can be because we are taught that if we go too broad we will face steep competition and not make as much money and if we go too narrow the market would not be as big as we need and we would not make as much money.

So how can we settle on one.

Well the first step is to stop worry so much about making money. (What?!)

Yes, I know how could I say that when that’s the point of starting a business in the first place.

If you can reach the point of putting something into the market as quickly as possible and getting better and faster each time you launch something, improving from “real” feedback I think is more valuable than harboring over the niche that you choose.

But if you like me you need a little more convincing.

That’s why I want to introduce to you what I call “The tale of the two niches”.

It’s goes a little like this

An entrepreneur invented the best shampoo and conditioner ever that can cure any problem a person was facing. They eagerly launched it into the market but could not get one sale. After months of crushing disappointment, the entrepreneur decided to investigate. So they went into the retail outlet and watched customer after customer pick up the competitor and decided to stop one lady and ask “Why not this one?”. She looked at him and looked at the product and back at him “Is this for dry hair? My hair is dry.”

The moral of the story is simple the problem you solve in the market is different from how and to who you market that solution. 2 niches.

  1. The Business Niche (Broad)
  2. The Market Niche (Narrow)

The Business Niche (Broad)

Your business niche is the general problem you will solve. The solution you create may work in many different situations.

Generally, to keep things simple I focus on 1 of 2 options

Option 1: The core desires

  1. Health
  2. Wealth
  3. Relationships

It might sound like:-

  • “I want to help persons get healthier”
  • “I want to help people make money”
  • “I want persons to have happiness in their relationships”

Option 2: The industry

It might sound like:-

  • “I want to do something in fashion”
  • “I want my business to be in technology”
  • “I want to build an app”

Here are 40 more niches.

Top 40 Profitable Niche Markets

The point here is that you have no idea about “how” will you do it and you don’t know “what” you will sell or even if it will sell but you see a problem that you want to solve – that’s your business niche.

The Market Niche (Narrow)

To understand the market niche you need to understand that most people are trying to accomplish something, in other words they are trying to go from point A to B. But challenges get in the way. For example, getting healthier is not rocket science eat better, exercising, and get good sleep but yet we struggle to do those things. Why? Because we are all unique and face different challenges.

The solution for a stay-at-home mom is different than the solution for a full-time mom, although on the surface they are both parents.

When you take your business niche and break it down into “who” needs this solution it helps you to create unique marketing messages for each person. So when they see your website landing pages and the personalized message specific to their unique challenge you can connect with them and then maybe they will buy from you.

Using the same examples above

The industry

  1. “I want to do something in fashion”
    • Corporate ladies
    • Kids
    • Curvy ladies
  2. “I want my business to be in technology”
    • Business
    • Consumers
    • Do it yourself persons
  3. “I want to teach coding”
    • Kids
    • Those looking for a career in coding
    • Entrepreneurs

Conclusion

Don’t worry about choosing the right one because the truth is you need both. The faster you launch to one of your market niches the more you can gain valuable feedback to improve and at the same time help people overcome the unique challenges that they face.

Unleash Your Potential, Practice Your Success

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