The riches are in the niches

Mark and I have been chatting a lot recently about niches. And just how important they are.

Like most businesses, we started out offering everything to everyone.

Anything that vaguely smelt like ‘elearning’, we’d be interested.

I think this is natural part of the development of any new business. You’ve got to suss out where the money is, where you can add value, what you like doing and whether you’re any good at it.

But as the saying goes, the ‘riches are in the niches’.

Many businesses are scared of niching too tightly. They worry about losing opportunities or pigeon-holing themselves.

I’ve always found the opposite happens.

They get known for something.

They get better at their craft (and it’s more repeatable).

The ratchet then starts turning.

More exposure leads to better work, which in turn leads to more exposure…

As a keen boulderer, I was told to wear climbing shoes that are slightly uncomfortable. They help you grip more and get more from your efforts.

The same advice could be applied to niching: define a niche that makes you wince a little, and you’re probably in the right place.

Recently I’ve learned that there are three categories of niches:

1. Narrow to Wide
   Example: ISO9001 consultancy for growing businesses
2. Wide to Narrow (where you provide a general service to a specific market)
   Example: Leadership training exclusively for female-led startups in the north of England.
3. Narrow to Narrow (where you provide a specific service to a specific market)
   Example: Nutrition coaching for vegan tennis players.

Candle Digital is an example of ‘narrow to wide’. This brings challenges when it comes to finding our target audience, as it tends to be a set of qualities that we want to attract, rather than from a sector or specific type of business.

If you are thinking of niching, or already have, it’s worth considering what category of niche you want to be in, as this will affect things like:

• Your scalability. What are the universal elements of your service that apply broadly, and how should they be adjusted for your niche?
• Market fit and validating demand. Is there a need for what you offer in different sectors?
• Communication and positioning. Explaining a niche service in a way that appeals to a broad market can be complex!

The question is: which category of niche do you fit in to?

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