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It is natural for a business to want to sell to a particular group of customers – in other words, to find its niche. First, people typically feel comfortable in one to two areas. They are reluctant to step outside of their comfort zone. Second, the theory that companies should sell to target audiences is one of the most common pieces of advice shared. And it is valid advice.

That said, when taken too far, niching becomes “super-niching.” When limited to a single super- niche, this approach can have dire consequences for the business that does it. Marketing to a super-niche shackles organizations with limitations and places them at risk. Recent events are a perfect example. Two types of companies that suffered the most during lockdowns were bars and gyms. These types of enterprises are both dependent on people frequenting their physical location. Businesses in these industries struggled when they could not let people stay onsite, and neither of these industries is even in a super-niche.

By fitting themselves into a niche rather than a super-niche, organizations give themselves the flexibility to cross-promote and connect clients, thereby strengthening and building their customer base. However, multiple super-niches are ok because they still allow for growth. Choosing one super-niche can have devastating consequences, including shutting down the business because none of their clients can afford to pay them any longer.

Points to Consider

When deciding how to niche itself, a business should ask specific questions about the niche or niches it is considering:

  • Is the income-generating potential limited to certain times of the year?
  • Are there geographic limitations on where the company can conduct business?
  • Do regulations exist that mandate how businesses serve clients?
  • If the organization is going to work with franchise clients, what are the franchise codes of conduct?

These questions will help leadership determine how the niche or niches affect its long-term profitability.

The Importance of the Big Picture

Leadership must understand the broader industry context in which the niche or niches operate. A thorough comprehension of the industry gives the business a competitive edge. This understanding informs negotiation skills and marketing tactics, while generating content and partnership opportunities.

When an organization has a firm grasp and solid knowledge of the industry, it positions the business to truly specialize in the niche.  For example, the expertise of a good sales professional is not limited to just closing sales.  It extends to qualifying leads, defining the key roles involved in decision-making, determining what information is necessary during the buying cycle, establishing value, etc.

Being well-versed in the broader industry enables companies to excel in their respective fields. Still, it also provides opportunities for broader content generation for marketing purposes. Keeping content fresh will keep target audiences engaged and the business at the forefront of their minds when they come to them to make a purchase.

Strike a Balance

As mentioned earlier, companies in some niches must rely on a specific time of the year to generate the bulk of their income. There are also geographic limitations for some types of organizations.

Before a business decides to take on a particular niche, leadership must ensure that it has a client base that can fill in the gaps. Essentially, the organization should have a diverse mix of clients that generates income year-round and across various geographical locations.

Long-term financial stability ultimately depends on making informed decisions when selecting a niche or multiple super-niches. When leadership takes time to carefully think through its potential niche or super-niches and strike the essential balance, it sets the business up for stability and longevity.

Contact Gavel International to be inspired by solutions that connect and engage your people.

This article was last updated on July 11, 2025

Jim Bozzelli
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