How to Find Your Target Market Niche Using Patterns, Not Possibilities
For six years, when people asked about my target market, I'd confidently say "small business owners who need help with marketing."
It wasn't wrong. I was helping small business owners. But, when I came up with that statement, I was still discovering and defining my niche market. And that "broad but safe" approach was now keeping me stuck instead of helping me grow.
The breakthrough came when I stopped looking at who I could serve and started analyzing who I was actually serving best.
Making that shift from possibilities to patterns changed everything about how I communicate, what I offer, and where I show up. It’s made my entire business more sustainable and focused.
The costly mistake small business owners make
Businesses tend to fall into one of two traps when defining their target niche market:
Trap 1: Demographics only
"We serve CEOs" or "We work with consultants" or "We help small business owners." This tells you WHO the audicene is but not what drives their decisions.
Trap 2: Psychographics only
"We help people who value authenticity" or "We serve growth-minded entrepreneurs." This tells you what motivates them but not who specifically you're talking to.
Both approaches leave opportunity on the table because they miss the intersection where your ideal clients actually live.
My audience intersection breakthrough
When I finally analyzed my best projects and favorite clients, I discovered something that transformed my entire business approach. I didn't have one broad audience hiding under "small business owners." I had two completely different groups (that each required a different approach to reach and serve them):
Group 1: Owner-operators providing services like construction, custom jewelry design, or raising meat. They work in their business daily. Their customers are mostly consumers. They're rarely on social media. And when they need marketing help, they want it done-for-you because they don't have time or the desire to learn new skills.
Group 2: Corporate escapees building businesses around their expertise. These include coaches, consultants, speakers, advisors, even professional headshot and branding photographers. They're online. Attend networking events. Value relationships. And they want to learn better ways to promote their business because who they are is such an important part of their business and brand.
Each group had clear demographics (who they were) and psychographics (what motivated them). But I'd been focusing mainly on the demographic side without understanding the deeper motivations that drove their decisions.
The pattern that shifted the definition of my target market
When I analyzed who invested most in my services, who I genuinely enjoyed working with and what services had the largest opportunity to scale, 85% fell into that second group.
They were corporate escapees, professionals who'd left the system to build something meaningful around their area of expertise.
As I dug deeper into that corporate escapee audience, both the demographic AND psychographic picture became clearer:
Demographics: Former corporate professionals, 3-5 years in business, building expertise-based services
Psychographics: Values authenticity, wants to learn vs. outsource, seeks sustainable approaches vs. constant hustle
My evolution looked like this:
Started broad: "Small business owners"
Found the pattern: "Corporate escapees"
Got specific: "Corporate escapees building expertise-based businesses who want to promote their business in a way that feels natural and grow without compromising their values"
Now I could speak to both who they were (demographics) and what drove them (psychographics). That combination made my messaging infinitely clearer and more compelling.
The fear that keeps businesses stuck in broad target markets
The biggest objection I hear when challenging clients to better define their audience is: "But what if someone not in my target audience wants to work with me?"
Here's the reality check. You can still work with anyone who wants to invest in your services. That's your choice. The goal isn't to exclude people. It's to make it easy for your ideal clients to immediately recognize you work with people like them.
Even my specific niche market represents a massive market. Consider these statistics:
5.5 million new business applications filed in 2023
47% of small business owners left corporate employment to start their business
35-40% of corporate escapees start businesses in consulting and professional services
78% survive the first year
The estimated market size based on demographics alone is around 700,000 people. Even narrowed by psychographics and a few other factors, it's more than I could ever serve.
The 4-step framework to define your niche market using patterns
Here's the complete exercise that transformed my business focus:
Step 1: Map your entire client base
List all your clients from the past 2-3 years. Don't filter yet. Include everyone who's worked with you, regardless of project size or your experience with them.
Step 2: Analyze the demographic patterns
Look across your entire client list for demographic patterns:
Industry or business type
Role or position
Experience level
Company size
Geographic location
What are the most common characteristics? Where do you see clusters?
Step 3: Analyze the psychographic patterns
Now look across the same client list for psychographic patterns:
Values (what's important to them)
Motivations (what gets them excited)
Preferences (how they like to work/learn)
Decision-making style
Communication preferences
Again, what patterns emerge across your client base?
Step 4: Find the intersection among your best clients
Here's where the magic happens. Among your best clients (the ones who invested fully, you enjoyed working with, and achieved great results) which demographic and psychographic patterns appear most frequently?
This intersection reveals your target market sweet spot: the overlap between who you can serve (broad client base patterns) and what motivates them (your best clients' characteristics).
Example progressions:
"CEOs" → "CEOs of growing companies who value long-term relationships over quick wins"
"Small business owners" → "Corporate escapees building service-based businesses who want to grow without the hustle"
"Consultants" → "Former executives turned consultants who prefer collaborative approaches over high-pressure sales"
Why the intersection creates marketing magic
When you nail both demographics and psychographics, several things happen:
Your messaging gets specific: Instead of generic benefit statements, you can address their exact situation and challenges.
Your content resonates deeper: You know what examples to use, what language feels natural, and what concerns to address.
Your marketing feels easier: You're not trying to be everything to everyone. You're speaking directly to people who get what you're about.
Your referrals improve. Existing clients and partners in your network can easily identify and refer others who fit your specific profile.
Your confidence increases. You stop second-guessing every marketing decision because you know exactly who you're talking to and who you serve best.
Think of this like gathering kindling for a campfire. You wouldn't just grab random twigs and hope they'll catch fire. You'd choose specific kindling based on the conditions and the type of flame you want to create.
The same is true for your messaging. You need to know exactly what audience "conditions" you're working with (who you serve and what drives them) so you can prepare kindling that catches fire immediately and burns consistently.
This intersection analysis gives you that clarity. It's the foundation for gathering the right kindling for your messaging.
Your next step
Don't let this be another article you read and forget. Set aside 30 minutes this week to complete the 4-step audience intersection analysis to help define your niche market.
Start with your entire client base and work through the demographics and psychographics systematically. You might be surprised by the patterns you discover.
Want to see how well your current messaging reflects this audience clarity? Take the free 5-Second Clarity Scorecard and get a baseline assessment of how your homepage communicates to your ideal clients.
The intersection analysis might feel narrow at first, but it's actually the foundation for all effective marketing. When you're clear on exactly who you serve and what drives them, everything else becomes easier.
Your ideal clients are waiting for someone who truly understands them. The intersection analysis helps you become that someone.
Ready to stop second-guessing how to promote your business? Book a free Now What? Clarity Session and we'll determine the next best marketing move for your business.