How to Define Your Niche Market
One of the most important things you can do once you decide to become an entrepreneur is define your niche market. Too many entrepreneurs skip this important step because they feel they can just start producing content and their audiences will find them.
Let me clue you in on something; producing content without defining your niche market is not effective. And, I’ll even be so bold as to say that you’ll be wasting your time. So, if you want to have a successful and profitable business, you must define your niche.
When you define your niche market, you’ll be crystal clear on your area of focus. As a result, your Ideal Customer Avatar (ICA) will know exactly what to expect from you.
What is a Niche Market?
A niche is an area of interest or a subset of a larger audience. An example of an are of interest would be dog training. An example of a niche market would be dog training for Cocker Spaniels.
People that own Cocker Spaniels are likely to search online for dog training. So, when they discover content and products specifically for Cocker Spaniels, they will feel like they’ve found their tribe. As a result, they are likely to buy products from the person producing the content because they’ll feel like it’s specifically for them.
Niching down to a smaller target audience is a great way to make your content stand out in a crowded space. Because there is less competition in a niche market, it creates a great opportunity for you to become an authority in the niche.
Niche Market Example
If you decide to focus on a large niche, such as parenting, you will struggle to stand out. Instead, start with a broad category and then continue to drill down to a niche and focus on a subset of people within that category. The subset of people is your niche.
Here’s a niche market example:
Let’s say your broad category is parents. You could then niche that down to parents of athletes. As you continue to further niche down, you might decide to focus on parents of youth athletes, ages 7-12. The more specific you can get, the better you’ll be able to serve your audience.
Now that you have is a very specific subset or niche, you can focus on their unique challenges and help them solve their problems. As a result, this will allow you to create content specifically for them and become the go to person for the niche.
For example, content that you could create for this audience includes:
- Teaching your child how to be a good sport even when their team loses
- Creating healthy 30 minute meals that will keep your youth athlete nourished and hydrated,
- How to help your child balance schoolwork with practice and games, etc.
Why You Must Define Your Niche Market
One of the biggest mistakes that new entrepreneurs make is trying to grow a business by talking to an audience that is too broad. Many new entrepreneurs do this because they want to build a large following and they are afraid of excluding people. They’re afraid that if they exclude people, it will limit their ability to build a successful business.
In reality, just the opposite is true. When your audience is too broad, you can’t really get to the heart of their specific challenges and subsequently help them solve them. If you are attempting to address a very broad audience, you won’t get very far.
So, here’s some advice: Focus on a niche market. Why? You can’t connect as well with a broad audience as you will with a niche audience. As a result, you really need to select a niche market.
I know it’s cliche, but it’s very true, “the riches are in the niches.” So, take the time to identify a market and then niche down to a sub-set of that market that you can relate to and genuinely help.
5 Keys for Defining Your Niche Market
Here are five (5) keys to consider when deciding on which audience to serve:
1. Identify Your ICA – Instead of just picking a broad category of customers, narrow it down, considering things like gender, hobbies, geographic location, employer, occupation, etc. Additionally, I suggest you get very specific about your ICA, including giving them a name.
2. Decide on the market you want to serve – Ask yourself the following questions to help you narrow your choice down.
- What topics do you know well?
- Which topics are you extremely knowledgeable about?
- What industries do you love?
- Is there an area/topic/market that incorporates all three of the above questions?
Remember, as an entrepreneur, you get to choose what area you work in and who you’ll work with. So, take your time to select a niche and identify your ICA.
3. Look for an Under Served Audience – There will always be groups of people who have specific needs, hobbies or concerns. They are looking for “their people” and a knowledgeable coach/mentor.
4. Select a Niche that You Are Interested in and/or Knowledgeable About – You don’t have to be an expert on your niche, but you have to have some level of knowledge in the niche you select. If you don’t, people will figure out pretty quickly that you are just “winging it.”
5. Create Content Specific to the Niche Audience You Serve – If the content is designed for a broad audience, it won’t convert as well. Remember, your niche audience is following you because they want content that is specific to them.
Characteristics of a Great Niche Market
Here are a few characteristics of a great niche market:
- It should be large enough that you can attract a decent size audience
- The niche should have a lot of keywords that people search for monthly
- There should be lot of content ideas for the niche market you select
- It should also have the ability to be profitable for you
- You are excited about the topic and look forward to teaching your audience what you know
Incorporate the above into your search for your niche market and you’ll end up with a market that you’ll love to serve. Additionally, you’ll also have lots of content that you can create to attract people regularly, serve them and keep them engaged.
Also, you’ll be able to create digital and/or physical products, courses, membership sites, etc., that your audience will be willing to pay you for.
Niche Market Strategy
Defining YOUR Niche
Now that you know what a niche market is and what an ideal customer is, here’s how you can get started defining your niche:
Conduct a brainstorm session to identify topics you’re interested in.
Narrow the topics (from the brainstorm session) to one that really interests you.
Niche down to get to a specific segment of the broader audience you identified in #2
Identify your ideal customer and determine what they’re struggling with
Make a list of topics that you can create content on, to help your ICA with their challenges
Create a few pieces of content and invite your ICA to watch your live video training, download your lead magnet or join your Facebook group
When you clearly state what you do and who you serve, you will attract your niche audience and your ICA.
Additionally, if you do a good job of marketing yourself and your content, provide relevant content (consistently) and a platform for them to learn and hangout, you’ll grow your audience organically.
What’s Your Niche?
So, now that we have discussed how to define your niche market, I would love to hear from you about what your niche market is and why you selected it. Feel free to send me an email telling me why you selected your niche and how you plan to attract your audience.
Also, if there’s anything else you would like to learn, feel free to include that in your email as well.
Need help to define your niche market?
If the answer if yes, grab a copy of my Define Your Niche Workbook.
In the niche planner workbook, I guide you through a comprehensive overview with various exercises, brain dumps, etc. As you complete the exercises in this workbook, you will clearly define your niche market and home in on your Ideal Customer Avatar (ICA).
Some of the material covered in this workbook includes:
- How to determine your Niche Sweet Spot (if you don’t get this right, you’ll just be spinning your wheels trying to build a business)
- Why your message, passion & talent is critical when selecting a niche
- How to clearly define your Ideal Customer Avatar
- Why you should focus on generating profits
- The difference between your tribe and your ICA (they are very different!)
- How to determine your Content Sweet Spot
Define Your Niche Workbook
The Define Your Niche Workbook is a comprehensive document that is designed to help you get clear on your niche, target audience, content creation and monetization strategy.
You will be guided through a series of exercises that will help you define your niche, identify your ICA and decide on the type of content to create.
Once you complete the exercises in this workbook, you will have fine tuned your niche and determined your business sweet spot for profitability. Also, you’ll know the type of content to create to have your audience tuning in regularly and ready to buy the products you create.