You’re not alone if you’ve been thinking about starting a business – 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 start-up 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.
So how can you stand out when you are starting a business? 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 ethically sourced 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. This is because it allows you to instil your values in the business, championing your interests and principles. It also gives you a better opportunity to compete and build a loyal brand following. But, before you start planning on opening your niche business, there are pros and cons to consider.
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Disclaimer
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.