Creating a Niche for Your Woodworking Business
Before we narrow down the idea of having a niche for your wood business, let’s talk about what a niche is.
Niche
Most successful businesses in the woodworking industries talk about their winning marketing strategies and how they came up with that kind of service/product for their business.
Have you noticed something in common with most success stories?
Even if they are all in the woodworking business, each of them has their own specialty or something to focus on, and that’s what we call a niche.
“A niche market is a segment of a larger market that can be defined by
its own unique needs, preferences, or identity that makes it different
from the market at large. “
Finding a niche differentiates your business from the competition and allows you to excel in your sector.
Just like our previous podcast guest, Greg Wilson of HempWood, the niche of his company is easily identifiable by the company name itself, HempWood. Greg’s USP (Unique Selling Proposition) that is appreciated by most of the people in the United States. Who would have known that this kind of wood could be the main reason for their successful business with a market of over $100 million a year in the United States alone for hardwood flooring made out of hemp wood.
Benefits of Identifying a Business Niche
Small business entrepreneurs who wish to build a consistent revenue stream, attract a loyal audience, and run a more focused business must identify their niche.
1. A niche helps you establish a loyal customer base.
Steve always mentions this in the podcast. You should always have a specific product you want to cater to.
You can build a loyal customer base by specializing. A solid market niche helps ensure that specific customers will want to buy from your business instead of the competition.
If you think you are more capable of doing tables than chairs and cabinets then focus more on building tables. A niche allows you to identify your product and brand, and know that your offer suits their needs.
Focusing on a smaller target group also enables you to concentrate on the quality of your customer service and establish a lasting relationship.
2. It Minimizes Competition
By creating a niche, you can set yourself apart from big woodworking businesses going after the mass market. You may concentrate on providing a superior product and service instead of having to compete with the biggest names in the woodworking industry.
3. It Reduces Marketing Costs
You can reduce the costs of marketing, advertising, and promotional costs.
Instead of investing your resources in more general promotional activities, you’ll conduct targeted advertisements and campaigns that are tailored to the requirements of your audience. Additionally, niche marketing enables you to establish more intimate connections with your audience.
4. It Demonstrates Expertise.
As mentioned in the statement above, instead of offering different types of wood finished products, you may position yourself as an authority and thought leader (for example, table making expert) in the sector of the woodworking industry your business focuses on. Being an expert makes you stand out from the competition, draws in the right clients, and builds credibility.
Creating a Niche for Your Woodworking Business
Now that we already know what a niche market is and why it’s important, how do we create a business niche for your woodworking business?
1. Select your target audience.
Identifying which wood products you have expertise with is an excellent start.
2. Define an Unmet or Underserved Need
Determine market gaps by analyzing your target audience. Your chosen wood expertise should solve a problem that your target market is presently facing. Pick a field where you think expansion is a possibility.
3. Research Your Customer Base
Analyzing your target audience’s needs, objectives, motivations, difficulties, and expectations through research. Getting your audience involved as early in product development as possible is essential.
4. Create Your Business Plan
Specify your ideal client, then choose a pricing model. Adjust your business concept to take into account what you’ve discovered about your target market.
5. Market your business to your specific audience.
Your marketing efforts should be targeted, much like the niche that your chosen wood product serves. The use of targeted advertisements, blog articles, and podcasts is essential for reaching out to potential customers for the niche of your wood business idea.