Technically speaking, a niche is an interior design term for a special recess in a wall meant to show off a decorative object.  The object is set apart within its niche.  Taking this definition into entrepreneurship, how are you set apart in your business from others? 

 

Finding your niche in business is paramount to gaining success and effective branding.  You might think that big corporations like Burger King and McDonalds are both places for fast food burgers and fries.  However, each has a niche.  You get tasty flame-broiled burgers and can have it your way at Burger King.  McDonalds is famous for streamlining the process of preparing good McFood quickly and for little money. 

 

Your niche will be the element that sets you apart.  Will you offer the best possible customer service and satisfaction?  Do you plan to manufacture a better design of widget?  Whatever your business, you need a focus that makes it unique and fills the metaphorical “niche” that your customers can easily find and remember.

 

Why a Niche is Important

 

Too many entrepreneurs go into business as generalists.  A photographer can point a camera at any subject and take a snapshot.  An architect can create designs of any structure.  But what if the photographer strictly created stunning images from sunset landscapes?  Or the architect specialized in designing ecological and “green” commercial buildings?  The more specialized your business becomes, the better suited it will be to obtain more business from customers who need your special product or service.

 

When you are creating your business plan, be sure to note clearly what your business focus is in specific terms rather than general.  For example, if you are opening a clothing retail store, instead of indicating that you will be selling women’s apparel, define the business focus on a specialized niche of indie designers and eco-friendly goods.  Your niche will help you better acquire financing, market your services and products, and secure the right customers.

 

How to Determine Your Niche

 

You may already have a good niche in your business and not even know it.  If you have not yet determined what your niche is, there are many ways you can narrow the focus.  You can create a niche using any or more of the following:

 

• Place – Do you perform your business in urban areas?  Rural?  East side?  West side?  Downtown?  If you are the only business of your kind in a particular area, then you can specialize in catering to that location. 

 

• Industry – What special need do you fill in your industry?  What problems do you solve that are currently outstanding in your industry? 

 

• Customers – Who are your customers?  The elderly?  Children?  Sports fans?  Religious groups?  Honing in on your specific customer base can help you further define your niche. 

 

• Methods – How do you perform your business?  One on one?  Subcontractors?  Books and tapes?  Telephone?  If your method of delivering your goods or performing your services is unique, you can brand your niche around this facet. 

 

Before you market your business or even try to secure financing, determine what your niche or specialty is.  Get focused and project to the world how you can solve problems and create solutions. 

 

 

Tags: angel investors, entrepreneurial niche, private investors, small business funding, venture capital, venture capital funding

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