Many businesses jump into positioning themselves within a market without first clarifying what makes them unique. They think that selecting a target audience is enough to give them an edge, but there’s an essential step they’re skipping: defining their unique approach. Niching is about honing in on what makes you unique, while positioning is about aligning that unique approach with the market that needs it. Let’s break down the difference between niching vs. positioning—and why understanding both is key to building a strong, sustainable business.

Niching: Honing Your Unique Approach

Niching begins with deeply understanding your strengths, experience, and what sets you apart. It’s about defining what you bring to the table that’s different from others in your industry. Without this clarity, positioning yourself within a market can feel like throwing darts in the dark.

Take, for example, a football player. Before a player can position themselves on the field, they need to know what makes them unique—like having long legs, great speed, and strong hands. In this case, they’d likely position themselves as a receiver. But if they focused only on positioning, they might end up in a role that doesn’t make the best use of their strengths. The same is true in business: don’t try to position yourself until you know what makes you unique.

Leverage What You Already Have

Rather than trying to fit into a pre-defined market, niching is about using the expertise and strengths you already possess. Instead of looking outward, look inward. Many people have skills, processes, or knowledge they’re not using to their full potential, and that’s where niching begins.

When you know what you’re uniquely qualified to do, you’re in a much stronger position to align your offerings with the audience that genuinely needs them. Once you’ve nailed down your niche, you can focus on positioning yourself within the market.

Positioning: Aligning with the Market that Fits

Once you’ve identified what makes you unique, positioning is the next step. Positioning involves finding the audience or segment of the market that will benefit the most from what you offer. Think of positioning as a way to amplify your unique approach to reach the people who resonate with it.

For example, a business owner might think, “I’ll position myself to work with women.” But if they haven’t taken the time to clarify what makes them uniquely qualified, they may not be the best fit for that audience. A closer look might reveal they’re better suited to serve parents, where their skills and experience truly stand out. Niching helps ensure that when you position yourself, you connect with the audience that fits best.

Focus on Your Ideal Audience

When you’re positioned correctly, you’re focused on serving the audience that aligns most closely with your strengths. Positioning is about fine-tuning your message, products, and services so they’re laser-focused on the needs of your ideal clients. Rather than trying to reach everyone, you’re concentrating on those who’ll get the most value from your unique approach.

In business, niching and positioning are two sides of the same coin. First, hone in on your unique approach—your niche. Then, align that approach with the market segment that fits best—your positioning. Understanding this sequence not only strengthens your brand but also gives you a clear direction, helping you stand out in a crowded marketplace.