FIND YOUR NICHE & develop your USP

Choosing a niche is a major step in launching a successful business but it’s definitely not a step you want to rush through, writes beauty business expert Liz McKeon

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Identifying and developing your niche helps you to attract clients who closely align with your market position, which boosts conversions and customer loyalty.

Here are some steps to follow.

Consider your passions and strengths

There are plenty of challenges that small businesses face, such as creating brand awareness, sales prospecting, poor access to funds and competing with larger, more established competitors.

However, if you enjoy what you do, it is easier to nurture and grow despite all these challenges. Passion for your business will drive you to devote your time and attention to providing your clients with the very best experience. And, passion for what you do will make you work harder to meet the demands of your growing client base rather than cut corners.

Next, start noting down your interests

Ask yourself the following questions: ‘What do I enjoy doing the most?’ and ‘What topics do I enjoy learning more about?’ and ‘What skills come naturally to me?’ Then, consider your strengths: ‘What areas am I most knowledgeable about?’

The areas where your interests and strengths overlap is the sweet spot – agreat potential business niche!

Assess your competition

A major step to take to find your niche in business is assessing the competition, particularly the salons offering similar solutions to those in your niche areas of interest. Ideally, you want to find a niche that has high demand and low competition. Evaluate the solutions your competitors are offering, such as pricing, quality of marketing and standards of customer service.

"Ideally, you want to FIND A NICHE that has HIGH DEMAND and LOW COMPETITION. EVALUATE THE SOLUTIONS your COMPETITORS ARE OFFERING, such as PRICING, QUALITY of marketing and standards of CUSTOMER SERVICE."

Approach it from a customer’s perspective

Think about the specific client your business will target. This is one of the most effective ways to find a niche to focus your business on and to stay ahead of the competition. The size of the customer segment should be large enough to warrant the investment you’re about to make, as well as a good financial plan for your salon to remain profitable.

Once you have identified your niche, test it out and launch. Develop your website, scale your business with social media and continue to apply effective market strategies to keep growing.

"CLEARLY DESCRIBE the BIGGEST BENEFIT of using your SALON and EXPLAIN WHY that is IMPORTANT TO YOUR CLIENTS. Think in terms of WHAT YOUR SALON DOES FOR YOUR CLIENT and the END RESULT they desire from YOUR SERVICE offering."

Positioning

The next question to ask yourself is, ‘What’s my USP?’

Learn to boost your sales by positioning your salon as the best in the market. What makes you personally, or your salon, more unique, more valuable and more visible in the market?

I’m sure that you’ve heard the old saying, ‘differentiate or die’. In our highly competitive industry, you have to be unique and fill a special niche to be successful in the marketplace. Yet, one of the most harmful mistakes salons make is not being unique and thus not positioning themselves as the best choice in the market.

Having a Unique Selling Proposition or ‘USP’ will dramatically improve the positioning and marketability of your salon and products by accomplishing the following three things.

Unique: It clearly sets you apart from your competition, positioning you as the more logical choice.

Selling: It persuades a client to buy from your salon.

Proposition: It is a proposal or offer suggested for acceptance by the client.

Your USP is the force that drives your business and success. It can also be used as a branding tool that is included with every tactical marketing effort you use, such as business cards, brochures or your website. This allows you to build a lasting reputation while making sales.

The ultimate goal of your USP and marketing is to have people say to you, “Yes, I have heard of you, you’re the salon that….” and then you respond by requesting more information, or making a sale.

Essence

Your USP is the very essence of what you are offering. It needs to be so compelling that it can be used as a headline that sells your product or service. Therefore, since you want to optimise all your marketing materials for maximum results, create your USP before any other advertising or marketing material.

Step 1: Use your biggest benefits Clearly describe the biggest benefit of using your salon and explain why that is important to your clients. Think in terms of what your salon does for your client and the end result they desire from your service offering.

Step 2: Be unique Basically, your USP separates you from the competition and illustrates that your salon is the most logical choice. Write your USP so that it creates desire and urgency.

Step 3: Fill an industry ‘performance gap’ Identify which needs are going unfulfilled in your local market. The needs that exist between the current situation and the desired objective is termed a ‘performance gap’. Many salons that base their USP on industry performance gaps are very successful.

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Step 4: Be specific and offer proof Clients are sceptical of advertising claims. Alleviate their scepticism by being specific and offering proof where possible.

Step 5: Word perfect The most powerful USPs are so perfectly written that you cannot change a single word. Each word earns you money by selling your product or service. After you get your USP written, your advertising and marketing will practically write itself.

Step 6: Integrate your USP into all marketing materials Variations of your USP will be included in all your marketing materials, such as: website; app; social media pages; business cards; brochures; flyers and signage; and phone and sales scripts.

Step 7: Deliver on your USP promise Be bold when developing your USP but be careful to ensure that you can deliver on it. Your USP should have promises and guarantees that capture your clients’ attention and encourages them to book with you. Having a strong USP can make your business a big success or a big failure if you don’t deliver on it, thereby risking your reputation.

Build your USP to optimise your marketing for maximum results. If your salon has a good, clear and honest USP, there is an excellent chance that you will be able to compete on factors other than price. And, that means that your business will be more profitable.