Starting a business: Should I niche?

According to data from Companies House, 222,068 new companies were set up in the UK within the first 12 weeks of 2023, a year-on-year rise of 8.2%. The question remains: “how unique are these businesses?”

It might seem safest to stick to tried and tested methods when you’re starting a new venture, but when you have an abundance of businesses offering the same service, it’s hard to compete. After all, one in five new businesses in the UK close within the first year.

How can you stand out? One option is to target a niche market.

WHAT IS A NICHE BUSINESS?

As the name suggests, a niche business aims for a specific target audience. One example of this is TomboyX, a clothing business specifically marketing to members of the LGBTQIA+ community. Or Lush, which prides itself on ethicallysourced cosmetics.

Rather than cater to a generalised audience, niche businesses offer goods and services to specific groups of people with certain values.

Starting a niche business isn’t just for the benefit of prospective customers but also for you as the business owner.