how to pick a niche

Advertising your brand to everyone on the web can be costly, with no guarantee of success. Marketing experts advise that you find your niche and work closely within it, until you have a large enough budget to launch a large-scale promotional campaign. Doing so will give you the best results with minimal expenses, since you will be targeting an audience that is genuinely interested in your goods or services.

The following criteria are helpful for finding a niche market:

  • customers’ location;
  • interests and lifestyle habits;
  • special occasions (weddings, graduations, childbirth);
  • profession;
  • national and cultural traditions;
  • behavior patterns;
  • age, gender, and other demographics;
  • life goals and needs

Boutique businesses and startups face an uphill battle when competing with large companies and established brands. Ineffective marketing strategies can quickly drain your resources, shutting down your enterprise before it ever gets off the ground. It is much safer and less stressful to build a small but stable niche business that yields steady income and gives you room to grow.

You have a better chance in the local arena of standing out from your competition and creating a unique brand image. You will be able to establish effective communication with your target audience, accurately determine their needs, and supply the exact products and services they want.

How to Choose a Niche

The Clever team has a few effective tips on how to find your niche and achieve outstanding marketing results. Our recommendations can be universally applied to any niche. The main thing is to identify the characteristics of your target market and keep them in mind when promoting your business.

1. Find the Business that Best Matches Your Interests and Skills

Many entrepreneurs make the mistake of following trends that promise big returns in a short period of time, without taking into account their own strengths, experience, and odds of succeeding in an unfamiliar field.

Take time to fully assess your risks before engaging in a new market. It is reckless to go blindly into unknown territory, hoping it will lead to success and prosperity. Lacking knowledge and having limited resources, you will quickly deplete your budget and risk failure before you ever turn a profit.

Choosing a popular industry may seem like a solid bet for your niche marketing strategy. But you have to consider that many of your predecessors were successful because they had niche-specific skills and were willing to work tirelessly to promote their brand. Without knowledge and skills, stepping into an apparently lucrative market does not guarantee success.

Also, it is important to be genuinely interested in your work. If you take on a project you find boring, just to make money, you will quickly lose momentum. Doing something that inspires you and gives you pleasure will bring excitement to your daily routine, and it will be easier to overcome challenges and endure for the long run.

Before choosing a niche and launching a business, realistically evaluate your experience, capabilities, previous accomplishments, passions and long-term goals. Investing your money and sacrificing your stability for something you don’t really care about will not bring you success or satisfaction in the long run.

 Find the Business that Best Matches Your Interests and Skills

2. Analyze Your Product

Aim your promotional campaign at potential customers who are most likely to use your product. Answer the following questions to accurately determine your market segment:

  • Is your product exclusive and designed for a narrow class of consumers? Or is it universal and beneficial to everyone?
  • Will you market your product as an affordable and easily accessible item, or as a high-end product for exclusive and demanding clients? Some products can be promoted as both affordable and prestigious.
  • What problems will your product solve for customers? Why are you the best company to solve them?
  • What is your staff capable of? You should have a clear idea of your employees’ skills and what tasks they can perform. Do not expect your team to quickly learn new skills that are outside their scope of practice. Retraining takes time and costs money. Outsourcing is sometimes the best option.
  • Will you supply your services to other businesses (B2B) or directly to customers (B2C)? The answer often depends on the type of product or service you offer, but sometimes both options are possible.

3. Create Profiles of Your Niche Customers

Even in a narrow market, your audience is not homogenous. Customers have unique demographics, expectations and needs, so you have to take an individualized approach.

For example, if you opened a restaurant serving only vegan cuisine, your target audience could be divided into multiple segments, driven by various concerns.

  • Health. People interested in fitness who want to live a healthy lifestyle may be interested in a vegan menu for its nutritional value and natural ingredients. Use words and images that convey fitness, good health and wellbeing.
  • Ethical considerations. To reach vegan ideologists, place an emphasis on moral values, and animal welfare and preservation.
  • Culinary explorers. Some people visit vegan restaurants to try unusual cuisine and expand their gastronomic horizons. When appealing to them, place an emphasis on original and unique dishes on your menu, and awaken their curiosity by offering something they have never tried.

Translating personalized messages to different segments of your target audience will help you achieve the best results in each segment.

Create Profiles of Your Ideal Niche Customers

4. Conduct Market Research

Leverage Google Trends to analyze the local demand for your services. The tool shows how often people search for niche items or services on Google. Use this data to determine the feasibility of marketing, both online and off, in specific areas.

For example, if you company sells handmade shoes for flamenco classes but there are no classes offered in your city, it makes sense to focus on online marketing.

Keep the profile of your niche customer in mind when analyzing your industry, to accurately determine the correct targeting parameters, the most effective web promotion channels, and the best platforms for offline ads.

Also, an existing market demand may prompt you to create a new product or service.

5. Identify Patterns in Your Current Customers’ Behavior

If you have been working with a large number of clients who share similar characteristics, it makes sense to devote most of your energy to them. Spending time and money trying to market your products to people who are not interested may bring you a few new customers, but not enough to offset your investment.

Offering a single five-star service will yield greater profits than a dozen mediocre services. Trying too many things at once will keep you from perfecting what you’re already good at. Stay in your lane, and strive for excellence. Success and satisfaction come from helping your customers solve their problems in the best ways possible.

Monitor Your Competitors Marketing Activities

6. Monitor Your Competitors’ Marketing Activities

Look around and learn from the experiences of your successful competitors. They have already made the mistakes and suffered the losses that you can now avoid.

While you’re looking, try to identify any gaps in satisfying customer demand. Rather than using cookie-cutter templates, write your own personal formula for success by meeting needs not addressed by your competitors.

For example, if most of your competitors operate only on weekdays from 9-5, provide services on weekends and evenings, filling a service gap by adjusting to customer needs.

7. Do Not Be Afraid to Experiment

Marketing is an ongoing process. The preferences and needs of your customers are constantly changing, and your promotional campaigns should reflect those changes. Try new tools and approaches to keep up with trends and advertise your products in the most effective ways.

Experiment with different promotional channels, audiences, and ad types. Analyze the reactions of your customers. Doing so will help you discover new growth vectors, inspire new ideas and give you an overall picture of the strengths and weaknesses of your brand and marketing strategy.

The Importance of Customer Feedback

Even if you have a clear vision of your business and its products, and how to market them, it is important to match your ideas with the expectations of your audience. Social media platforms provide the best sources of customer feedback. Create branded accounts on Facebook, Instagram, Twitter, and other popular social media platforms to establish friendly and non-intrusive communication with your target audience and attract new leads to your website.

Pay close attention to what customers have to say, and make responsive changes that show you really care. Address problems and complaints quickly. If you fail to take action, it can harm your reputation and drive customers to your competitors. Word of mouth is an extremely powerful tool, and a dissatisfied customer can quickly influence thousands of web users.

Maintaining active accounts on multiple social media platforms takes time and effort, but the results will be worth it. Show your customers that you are genuinely interested in their wellbeing and ready to make changes that deliver even more value. In return, you will gain their trust and continued loyalty.

match your ideas with the expectations of your audience

Aspire to Grow Your Business

Starting small with niche marketing does not mean you can never expand and grow your business. The important thing is to choose the right moment for conquering new markets and expanding your target audience. If you try growing your business too soon, it can result in irretrievable losses.

Answer the following questions to determine whether you are ready for expansion:

  • Do you have the time, finances and knowledge necessary to tackle a new niche?
  • Will your products deliver value to new customers?
  • Will your new services have a negative impact on the quality of existing services?
  • Do you have sufficient resources to maintain the high performance of all business processes?

If you feel ready for growth and progress, take steps to explore new markets, exploit promising opportunities, and scale your brand. If you have doubts, you probably need more time to prepare your business for expansion.

Will Niching-Down Your Business Lose Potential Customers?

Indeed, applying niche marketing strategies isolates your company from larger audiences. But that is not always a bad thing. Working in multiple markets can cause you to spread your time and resources too thin. Zeroing in on the most profitable market lets you focus on quality and customer satisfaction, bringing you greater success in the long run.


While most entrepreneurs dream of conquering global markets, a well-thought-out niche campaign can be a great start. Working closely now with an audience that appreciates your services does not mean you cannot expand down the road. Building trusting relationships with your customers while growing your expertise in a narrow field can lay a solid foundation for your company’s future growth.