People are different — and that's fantastic news. Not everyone has the same favorite color, likes the same food, enjoys the same activities, or laughs at the same jokes. Thank goodness that's the case, or life would be pretty boring. But not only would life be boring — there would be no need for more than a few entrepreneurs in the world. If everyone's needs and preferences were identical, the only reason to start a business would be to introduce a completely new concept, and there aren't many of those.
So we're fortunate to live in a world where people have a diverse range of needs and wants, because it allows for all kinds of business opportunities. And if you know how to focus in on a particular need or want, your opportunity for success is great indeed.
No Need for Total Uniqueness
One of the best things about finding a niche to market to is that you don't have to invent something brand new or come up with an idea that no one has ever considered before. It's possible to approach an established product or service in a way that simply speaks better to a certain group and do very well.
For example, how many self-proclaimed 'social media consultants' are there in the world? About 8 million? If you really know your stuff when it comes to social media marketing and would love to make it your business, you might become discouraged thinking that the market is flooded. But what else do you know a lot about? Were you an insurance agent, real estate agent, or hotel manager before having the idea to consult about social media? If so, you can bet there are niche markets in those industries waiting for the right SMM expert to tap into them.
The Power of the Internet
The internet has obviously revolutionized business in many ways. One of the most significant and exciting developments of internet commerce is a company's ability to easily reach millions of people around the world. What this means for niche businesses is that even if you cater to a relatively narrow audience, chances are that audience is still comprised of thousands or even millions of people you have access to through the web.
If you were selling an instructional DVD on yodeling and had to stick to your local market, you might have a hard time making a living. On the other hand, if you can reach your target audience online, chances are good you'll do pretty well!
Micro-Niching Takes it to the Next Level
Let's say you have your instructional yodeling DVD all ready to launch online, and you discover that yours is one of a hundred such products that are already well established in the internet yodeling community. (You can bet there is an internet yodeling community.) Are you sunk? No. There could still be an opportunity in a micro-niche. Focus on stay-at-home moms or teens that want to learn how to yodel, or develop a program just for yodeling seniors.
The point is there are an infinite number of niches and micro-niches just waiting to be tapped. So instead of trying to compete with every other Tom, Dick, and Harry or trying to be everything to everyone, narrow your focus and broaden your horizons!
Matthew Toren is an Award Winning Author, Serial Entrepreneur, and Investor. He Co-Founded YoungEntrepreneur.com along with his brother Adam. Matthew is co-author of the newly released book: Small Business, Big Vision: “Lessons on How to Dominate Your Market from Self-Made Entrepreneurs Who Did it Right” and also co-author of Kidpreneurs.