1 Learn the concept
Every mass market is made of smaller groups with their own needs. These smaller groups are called niches. A niche market can be easier to win because there is less competition, customers feel understood and word of mouth travels faster inside a tight community. For a small business with a small budget, going narrow is often the smartest way to grow. This lesson explains what defines a niche, why niches can be profitable and how to find one.
2 See it in action
- A niche is defined by a specific need, interest or identity, not just by a product.
- Niches can be more profitable because customers pay for products made for them.
- Too narrow is a risk: check that enough people care to support a business.
Worked example
Narrowing a market step by step
- Broad market: fitness. Millions of competitors and a vague audience.
- Narrower: fitness for new parents. Better, but still wide.
- Niche: 20-minute home workouts for new parents with no equipment. Specific, easy to describe and easy to find in parenting communities.
Check: is it specific (can you name the person)? Is it reachable (where do they gather online)? Is it big enough (do people search for it and spend money on it)?
3 Study an example
Real-world case study
Beardbrand: building a business around an identity
What they did. Eric Bandholz, Lindsey Reinders and Jeremy McGee started Beardbrand in early 2012 in Spokane, Washington with about $8,000. They launched with a Tumblr blog, a YouTube channel and an online magazine called Urban Beardsman, aimed at stylish men who wear beards. Bandholz says he coined the term "urban beardsman".
What happened. Bandholz was featured as a beard expert in The New York Times in January 2013, which helped the business grow. In October 2014 the company appeared on ABC's Shark Tank, asking for $400,000 for 15% equity, and all five investors declined.
What to take away. A niche gives people an identity to belong to, not just a product to buy. Beardbrand created content and community for that identity first, and the products followed. The Shark Tank outcome is a reminder that a clear niche still has to be proven in the market.
Details come from a Wikipedia summary of business press coverage; verify specifics before quoting them.
Sources Wikipedia: Beardbrand
4 Apply it and download
- Write three niches within a market you care about.
- Pick one and describe the people in it.
- Test it with the niche template: is it specific, reachable and big enough?
Worksheet Niche finder templateOpen, print or save as PDF