The old saying goes, “Jack of all trades, master of none, but oftentimes better than a master of one.” While having a broad knowledge of skills and abilities is indeed a handy thing in life, the exact opposite is true when it comes to business. When the riches are in the niches, it’s far better to do one thing incredibly well rather than do many things just okay.
When we look at the medical field, we have many different fields of expertise, such as neurology and endocrinology. These doctors spent a great deal of time and practice to become experts in specific niches, so they can deliver specific care to individuals. For example, while we may go to a family doctor for a simple cold, we would go to a rheumatologist for an autoimmune disease. It’s not that we don’t appreciate our family doctors, but sometimes we need an expert with specific skills. The same is true in business.
When someone is an expert at what they do, they become a trusted resource in their field. Whether that be facilitating startups or baking cupcakes, an expert carries knowledge that someone who generally dabbles in the field does not. Having one niche, and knowing that niche inside and out, builds credibility, trust, and loyalty.
How Do You Find Your Niche?
One of the first pieces of advice offered to potential entrepreneurs is to know their niche. If you know your niche, then you can discover your competition, your market potential, and your customer demographics before even beginning your entrepreneurial journey. Without having a niche, all there is to rely on are general statistics. While general statistics could be beneficial to your journey, they may also be a waste of time and resources. Having a niche gives you a launchpad for your business.
The five steps to finding your niche as reported by Entrepreneur are as follows:
- Identify your interests and passions
- Identify problems you can solve
- Research your competition
- Determine the profitability of your niche
- Test your idea
The five steps as reported by Forbes are:
- Evaluate your passions and skills
- Figure out if there’s a market for your niche
- Narrow down your niche
- Check out the competition for yourself
- Test your niche
Spreading your business too thin can have seriously detrimental effects. It can damage brand loyalty by turning out mediocre products or services, damage credibility by being misinformed or uninformed on certain things, and damage market potential by having far more competitors across various industries, just to name a few. It’s also far more stressful to try to cover many different niches than it is to focus on just one. Trying to keep up with ever-evolving news, technologies, progression, markets, and tools across many industries can be overwhelming to the point of causing a complete burnout.
Closing out with another old adage, “you can’t be all things to all people,” and that’s okay! As time goes on and your company grows, you can begin to contemplate growing into additional areas, but when starting out, focus on one niche. Your niche. Become an expert in your field. Market yourself as a specialist. Do one thing, and do it extraordinarily well. The riches are in the niches, after all.