Have you heard of the Niche Business Formula?
It sounds like a bit of a trendy marketing term doesn't it but actually the
theory is sound.
And I really want to emphasise this point, right at the beginning of your business idea journey because it will pay out enormous dividends in the long run.
Niching your business is a whole lot more than just saying you work with only male or female, or mums or seniors or people who just eat fish.
If you understand this then you understand what a niche business is all about.
You will then find sharing your particular message to the right people a breeze instead of trying to compete for everyone and his or her dog, and then getting really annoyed and demoralised because your potential customers are resisting taking up your product or service.
And why is that you might ask?
A quote from a book called Switch by Chip and Dan Heath expresses it perfectly.
Resistance being, people don't want to buy your product or service because you haven't fullfilled all 4 parts of the formula.
Let explain a bit more you will see why this makes absolute sense.
The problem most people have with creating a niche business is a fear based one and in the reality, it is unfounded and unnecessary.
A fear that holds you back ,and wastes so much time of your precious time.
It’s nonsense really.
Fear of missing out on business, fear of missing potential clients and fear of not being successful.
The truth is the very opposite of this, the truth is you will find clarity in your bit of the market.
If you narrow down your focus you will be talking to the right people, with the right message at the right time
So to illustrate I want to share with you my Niche Business Formula.
This little formula will help you hugely with focus right when you need it, at the beginning of your business idea formulation.
In essence you are determining exactly
Let me give you an example of a
Let’s say you want to start a business offering events organisation and management.
You need to articulate a clear answer to
Part 1 of the Niche Business Formula
There is a saying along the lines of “A business for everyone is a business for no one” or something like that.
If you have your “I can help everyone” hat on now imagine how do you know how you are going to market your service in the future?
Who will you target , where will you spend your marketing budget to best effect, which publications will you write articles for, and if you went on a podcast as a guest, who would you be talking to and what about?
Thinking further along, imagine if you had to go on a stage and talk to a group of people, who would they be?
Imagine if you went on TV for interview to describe your business
Who are you talking to?
It wouldn’t be everyone watching, would it?
Can you see where I am going with this… you can’t have an audience of everyone can you?
Now, I can already hear you saying…”but there won’t be enough money” in just doing x, y or z..
I want to also do a, b and c as well or I will miss out.
Fine, by all means you can branch out to a, b and c but you are starting with x, y or z to begin with.
As an intelligent, articulate soul you will immediately see the benefit of this approach.
You are going to harness the power of focus, and focus brings on clarity as you will realise as you go on.
Can you see why I chose that quote “Resistance is created through lack of clarity?”
Now as an example and for a change I am going to the other end of the spectrum of joy.
Imagine your event management is specifically for say funerals, because this is a fast growing events sector.
I have linked to Lianna Champ and her beautiful funeral services as an example.
You can see how she speaks to her very specific audience and she has also written a book for her audience about dealing with grief.
So she provides another income stream for her business.
Very useful to her clients and income generating for her.
You can clearly articulate who your business is for (bereaved families and friends)
You can then move on to Part 2 of the Niche Business Formula
OK, so you operating an event based business can now identify the problems of people trying to orchestrate a funeral.
Instead of the norm though, your clients want to organise a really good send off in a different way.
More of a party than a sad event.
Their problem may arise because although they want to organise a send-off party, they feel too emotional and raw to do it themselves.
Or they know what they want but can’t articulate it themselves or know where to look for what they want.
So to solve their problem they are looking for someone who can help them.
Someone who can ask the right questions with an empathetic manner to get them to their end result
Which then leads to Part 3
Obviously, with a funeral, you only get one chance to do it right.
They are paying because they want your expertise for you to get them to the end result they want, the perfect send off for their loved one.
Essentially you are doing some of the thinking for them, due to grief and sadness people often forget things, miss things or just put stuff to the back of their mind.
Your role would be to ask the right questions, in exactly the same way you would for any event to elicit what your client wants for the absolute best end of life party they could hope for.
You are finding the best suppliers for their needs and pulling together all the strands to make it work for them.
The final part of the equation
They will feel gratified they did the best they could for their loved one.
You helped them to create the best end of life party they could possibly have hoped for and it will leave them with happy memories of their loved one.
Can you see now how choosing a specific niche helps your thinking?
If right at the beginning you said
“I want an events business and I can help anyone who wants a party” you would have stood at the bottom of a mountain looking up and never saw past base camp.
You have now clearly articulated
When you have that kind of clarity you will be ready to start marketing to that crowd.
So don’t make it so hard for yourself.