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. 

Business plans are one of the most important marketing tools for your new business.  A new business with a sharp and focused plan will be the one that gains the attention of venture capitalists and eventually receive investment monies.  Is your business plan ready to be shown to a venture capitalist firm?

How would you know whether a business plan is perfect or not?  First, a business plan cannot be a simple template easily downloaded from the internet and switched with your business information.  It must be unique and well-written with your business in mind. 

Who Should Write Your Business Plan?

Preferably your business plan should be composed by a professional writer who specializes in business plans and can make your business shine.  Although there are many do-it-yourself software packages available, a professional writer has the experience and the narrative capability to help your business plan shine.  However, a professional writer is not cheap or inexpensive.  They are experienced professionals who should have a number of other business plans under their belt.  But the money spent on a good writer may be the difference in attracting the attention of venture capitalists.

What Should Your Business Plan Focus On?

Your business plan must focus on the strengths of the business.  Are you planning to fill a special niche in your industry?  Or provide a special value-added service?  Be sure to highlight how your business will stand apart from the rest.  Is your business leadership team composed of top members in the field with stellar resumes?  Give special attention to that focus in the plan. 

The Financials

By far, you will find that venture capitalists will want accurate projected financial data in your business plan.  Give the financial section of your plan extra attention.  Conduct research on other similar start-up companies in your industry.  What was their financial growth like?  Use all the data available to provide the most complete and comprehensive financial projections possible. 

Before you go into a meeting with a venture capitalist firm, be sure you are ready to provide them with a shining business plan.  Write it well.  Do the research.  Focus on your strengths.  With the right business plan, you will have the tools to get a VC firm on your side.