Whether you have a great business idea already or don’t know where to start, if you’re considering setting up your own small business, you need to know your niche. This will ensure you are clear about what you’re selling, who you’re selling it to and how you will market yourself in the future.
It’s tempting to say you’re good at lots of things to try and appeal to a broad range of people but simply put, the more specific your niche is, the better you can market yourself and the better you can market yourself, the more customers you will eventually attract.
Consider the following points when setting up your business to ensure you have the best basis for your future marketing covered from the outset.
What’s your dream?
To turn your dream of running a successful business into a reality you need to know a few things about yourself.
- What do you want to achieve? – Financial independence? More time at home?
- What do your friends say you’re great at?
- What motivates you and drives you to get things done?
- What do you love doing?
- What kind of hours do you want to work?
Once you know all of these things you can start to hone in on the specifics of what you’re going to do with your business. Make sure your business idea matches up with what you said you wanted above, and if it doesn’t fit, ditch it!
What’s your niche?
Now you know what motivates you, what you’re good and what you want to do, it’s time to find the niche you will operate in.
To define your niche, consider these things when you picture your ideal customer.
- How old are they?
- Where do they live?
- What are their interests?
- How much money do they make?
- What books do they read?
- Where do they go for advice?
The more specific you can be, the better defined your niche will be, and as this is essentially the basis of all of your future marketing efforts, it pays to get this bit right! I find that actually drawing a picture (no artistic skills required) and labeling it with the answers to the questions above, along with any other key information about them helps.
Remember to stick that picture to your desk to provide a permanent visual reminder of the ‘real’ people you are talking to. This will help you to stay on track and stay relevant when marketing your buisness.
Once you have completed the exercise above, you should be able to come up with a simple descriptive sentence, like the ones below to describes what your business does and who it is for.
- A cake maker for children’s parties in Devon
- A caterer for large, outdoor events
- A social media manager for tech startups
- An advertising specialist for businesses under 5 years old
When you’ve reached this point, congratulations! You have defined yourself as the person who can help your ideal customer to find the products or services they need.
Now you’re ready to crack on with creating a marketing plan that reaches the person or people you have defined, and are looking at in the picture on your desk.