Niching down is important. It gives your target audience a quick way to know what you do, how you can help them. Experts say the most important thing for startup success is identifying a niche.
Niche builds trust. It lets people know you are an expert in some field and that they can rely on you to get the desired results.
Another benefit of choosing a niche is that it helps you focus on what you do best, thus helping you improve further.
Having a niche business can help you increase sales and income. Because your target audience can easily understand what you do, you are likely to attract more customers when you niche down.
So how do you actually choose a niche?
Many people are confused how to identify and choose their niche. They may be good at many things and not know which to focus on. And, instead of focusing on one category, they become a jack of all trades. Actually identifying your niche is easier than thought. To know what niche you should choose, it’s important to know your comparative advantage.
Like countries, individuals also have a comparative advantage in some area. This is usually the field where you can do something best with the least cost. For individuals, I.e. entrepreneurs and solopreneurs, cost is usually the time spent doing some activity.
Ask yourself which activities you can do extremely well, very fast. In which area can you give clients the best results fast? You may be good at building websites and at creating graphic design, logos, etc., for example. But you will be able to do one better than the other or faster than the other.
Which are you better at? If you are equally good at both, which one can you do well faster?
For example, you may be able to build a $5000 website in 2 weeks but create $5000 worth of graphics in 2 months. Thus you have a comparative advantage in building websites. If you are equally good at both tasks, which one should you focus on? Obviously websites where you have a comparative advantage.
Another person may be able to build a $5000 website in 2 months but create $5000 worth of graphic designs, logos and branding materials in 1 month. This person has a comparative advantage in graphic designs and branding material and should focus on that.
Use these tips to identify your niche, that which you have a comparative advantage in, so you can correctly convey your expertise to your target audience and focus on what you do best.