When starting a business, it’s tempting to cater customers of all ages and all walks of life. The dollars that customers are going to pay you are hard to resist that sometimes entrepreneurs would really offer whatever they could give just for that extra money.
As a freelancer, I admit, like everybody else, I did that. When I was starting, I didn’t believe in the idea of finding my niche. I put up a business to make money, and I needed every client that would knock at my door. I couldn’t say no to the dollar they would pay me. But not long after, I felt exhausted doing things I didn’t really like doing, and yet I haven’t had enough revenue.
So, okay, I did my assignment. I researched further, listened to business coaches, had conversations with the people who were able to make it, and did exactly what they did.
Why Choose Your Niche
According to Dan Lok, choosing a niche when starting your business does not necessarily mean that you embrace that one forever. It’s just so you’ll know what you are best at, at this moment, and focus on that first.
Focusing on one area is like decluttering the mess in my brain. I concentrate all my effort and energy in just one direction. I have a particular product and target a specific audience. I was able to improve not only the looks but the quality of my product that make my customer buy.
Putting your focus and energy on just one thing will make you an expert in that field. Once you successfully deliver something your customers love, they will generate more sales for you through word of mouth. That saves you time and money on advertisement, brings in prospects that you could turn into paying customers and regulars that come to like and trust you.
Face it, as a startup, you don’t have the budget as big as those big players in the market, which is why you start a small business. It’s okay to be a small fish first in a big pond and then slowly grow big, rather than to start big in an ocean of sharks and end up dying.
For a starter, managing a big business can be overwhelming. Having many products to advertise will require you to invest more money to optimize your web page for campaigns, SEO, and more.
Managing and selling different types of products as a one-man band will jeopardize the quality of product and service you will give your customers.
When you stick with just one niche, you’ll end up selling the same target market with different products. That is better than chasing new customers all the time. When you satisfy your customer with your first product, they will keep coming back, increasing the amount of money they will spend on your business.
Not all startups make it big the first time. Lucky for you if you do. Risks are higher when you’re just testing the market. If your startup investment is smaller, the risk you’re taking is lesser. If the niche you choose didn’t work out, you could quickly move on to a different direction.
Starting small will give you more room and opportunity to improve and make it big. Test the market. If you fail, learn from your mistakes, until you are able to formulate a proven marketing strategy that will make you sell more. Slowly, you can add more similar products.
Start small and slowly expand your business horizon by getting into another niche, and then do the cycle all over again.
Become A Specialist
Never dream of becoming a jack of all trades, and master of none. That is not providing value to your product, not generating loyal customers, not bringing you enough profit, and not giving you a sense of fulfillment.
Find the niche that will work for you and your target customers, stick with it, and be a specialist. Discover another niche, get into it, specialize again, and slowly, you’ll notice how you’re building your empire.
Yes, you can’t start as Amazon or Alibaba, but you can eventually become one.