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Pros and Cons of Niche Businesses

Did you know that there are companies that provide crime scene cleanup services? Although the title of the job may seem grisly, the workers of these companies have different roles. They are:

  • part forensic cleaners (they take care of the blood, gore, fluids, and other nasty stuff after a crime has been committed),
  • part biohazard technicians (they remove and properly dispose of toxic materials), and,
  • part interior restoration specialists (they restore areas of the house that indirectly get damaged by death like a decomposing body that’s leaked fluids to the floorboards).

Are you thinking, isn’t this company too specialized?

Well, you got that right. These companies are part of what is called a niche business.

What is a niche business?

The Cambridge Dictionary defines “niche” as:

  • a job or a position suitable for a person or a small group;
  • a hollow area where something can be placed or where animals can live in;
  • something that interests or affects a few people;
  • something that is aimed at only a few people; and,
  • a business that offers a product or service that other companies do not provide.

So, a niche business caters to a particular set of clients or offers a very specialized set of services.

There are many of them out there. Some stores sell only vintage collectibles. Some cafes specialize in a specific animal like cat cafes or dog cafes. Some travel agencies offer adult-themed tours.

There are so many more examples. But just like other types of entrepreneurial ventures, niche business has its pros and cons.

Advantages and disadvantages of niche businesses

employees in the office

Let’s start with the positives. A niche business will have:

  • a clear idea of its target client and marketing strategies;
  • less competition because there are very few or even no competing companies;
  • a higher chance of developing brand loyalty and having repeat customers since it provides the product or service its customers want; and,
  • the potential to create other specialized products or services based on the initial product or service (e.g., crime scene cleanup is not just for scenes of brutal deaths).

On the downside, a niche business can:

  • be too niche, and thus have a tiny market and profit,
  • have limited growth because of the small clientele.

Niche marketing

So what do you have to remember if you want to venture into a niche business?

Marketing is key. Since you know your target audience, make sure that you reach your customers.

Take advantage of the technology you can access. Create a content-driven website. Regularly upload Instagram photos. Build a Facebook group. Chat with customers via Twitter.

If you don’t know how to do this, then partner with a company that can offer the services you need. For example, consult a company that provides SEO services for crime scene cleanup.

Conclusion

Starting a business will always have its risks, and its advantages and disadvantages. But if you can find your niche and market it well, then you might have the recipe for a successful and global business.

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