“42% of failed small businesses offer products or services that don’t bring anything new or useful to the market.”
It may be unconventional, even demotivating, to start making a point by focusing on failure.
But here’s the thing: the bitter pills must go down before recovery sets in, wouldn’t you agree?
Before you launch a profitable business, you need to do some groundwork. And, an important part of this ground work is finding a niche market that’s aligned with your passion.
In fact, it should be one of the FIRST things on your agenda.
I bet you’re tired of hearing this over and over again. But unfortunately it’s one of those things, like waking up early and having a defined vision[a1] , that seamlessly fit into the fabric of a successful life.
So here are the REAL reasons why you need to niche down, keeping your passion in mind.
1. To build an authentic brand through thought leadership
Thought leadership only becomes effective when the passion and experience of an entrepreneur coincide with the interests of customers.
What is thought leadership really?
It’s all about having answers to the problems faced by your target demographic coupled with your unique spin on trending topics.
So when you bank on your passion and experience to speak to your customers, you EASILY emerge as a thought leader who values authenticity. And this characteristic is transferred to your brand when you’re a niched-down small business owner.
By becoming part of your audience’s conversation, you also become someone they turn to FIRST for vital information and solutions to pressing problems.
Over time, this will pay off in terms of more exposure and brand loyalty, and thus more growth.
2. Innovation will be more intuitive and useful
“As a makeup artist and businesswoman, creativity is at the heart of my work, from mastering the perfect color in product development to pushing the envelope in creative marketing.”
When you pick a profitable niche that you’re passionate about, you’re much more likely to be in tune with your customers’ needs.
This means you’ll be able to identify their problems easily and come up with useful solutions through your products or services.
And let’s face it, people are always looking for ways to make their lives more easygoing and convenient (and they’re more likely to buy from brands that are in sync with their needs).
3. You will STAY in love with your business
So you want to start a business and be in charge of your own time, growth, and success. But the one thing that’s possibly holding you back is finding a niche.
If you ask me, you don’t have to look far when you’re on the hunt for a niche market to launch your business.
Simply identify what YOU’RE passionate about and that should give you a good list to work with.
In my experience, even when entrepreneurs are chasing profits hard and fast, they need a cause to hold on to. That is, they need to fall in love with their business over and over again to walk the walk.
Because let’s face it: not everyone’s up for the hard work it takes to build a profitable business.
4. Lower marketing and customer acquisition costs
With a profitable niche that also speaks to your passion, you already have a fair idea who your products or services will appeal to.
The next step is to dig a little deeper, craft a rock solid persona, and launch hyper-focused campaigns that bring your brand to the forefront.
As a result, you spend less time and money marketing to anyone and everyone – a mistake most first-time business owners make.
Another major advantage of playing with a narrow (but profitable) niche is that you can sell multiple products to the same group of people instead of focusing on bringing new customers on board all the time.
Picking a niche market aligned with your interests has a host of benefits.
For one, you’ll be able to scale quicker when you have a focused set of products/services and target audience to work with. Plus, you’ll be making smarter business decisions that further your growth because you’ll know best whether your offerings are likely to appeal to your customers or are line with your vision.
Wondering how narrow is too narrow when it comes to picking a niche for your business? Let’s hop on a no-obligation call or slide into my dm here.