There’s this idea floating around the business space that your niche should be laser-focused on a specific type of person. Usually, it goes something like this:
“You need to know your ideal client like they’re your best mate. What’s her name? Where does she shop? What kind of coffee does she order? What’s her dog’s star sign?”
I get the intention. Clarity is important. It’s one of the first things I learned in business and it did help me get clearer on my marketing. But for many service-based business owners, especially when you’re just starting out, trying to build a niche and a business around a fictional person can feel like trying to dress a mannequin for a dinner party you’ve never been invited to.
The Niche No One Talks About: The Problem-Based Niche
Let me take you back to when I ran a cake business. Originally my ideal client was ‘anyone who needed a cake’. However after learning about ideal client I created my ideal client – Victoria. And like a dutiful student I could answer 100 questions about her.
And yes, when I did that and tweaked my marketing I did stop getting clients that wanted a bespoke cake for less than what they would pay in a supermarket. But I also got an inbox full of the most random cake design requests. Orders that I took but HATED making because they just weren’t me. Cakes that never saw the light of day on my social media. Not because they were badly made. But because thats not what I wanted to represent me.
And then the penny dropped. What I had was a style. A very specific kind of cake. Classic yet modern. Beautiful and bespoke. My cakes weren’t for everyone, and that was the point. At a wedding exhibition someone came up to me and said –
“wow your cakes are really boring. They’re all white with flowers.”
And inside my heart did a little happy dance. Because to her my cakes were boring and she went off to another stand whose cakes were a rainbow of designs and colours. But all the people who wanted classic. They came to my stand. They booked with me.
I wasn’t marketing to a person. I was marketing a style.
People came to me because they wanted something specific. That want — that problem of a specific style of cake — became my niche.
And that lesson stuck with me.
Because here’s the truth no one shouts loudly enough:
Your niche doesn’t have to be a person. It can be a problem.
When you niche around a problem (or a set of related problems), you open the door for people who are united by what they need help with, rather than how old they are or what magazines they read.
Ideal Client Work Can Be Helpful — But It’s Not Always the Starting Point
This isn’t me saying “don’t bother with ideal client work.” It’s just that sometimes it’s not the first thing to focus on, especially in the early stages of a service-based business.
For example, if you’re a product-based business knowing your demographic inside out is really helpful.
Branding, ads, language, product design all hinge on understanding your buyer’s lifestyle and values.
But service businesses? That’s a different ball game.
You’re not selling a thing, you’re selling a transformation. A result.
And that transformation solves a problem.
Examples of Problem-Based Niches
Let’s ground this in a few real-world examples. Here are some problem-based niches in action:
- A VA who helps small business owners get out of inbox overwhelm by building and managing email systems.
- A digital strategist who helps coaches automate their client onboarding, so they stop losing leads in the DMs.
- A social media manager who helps ADHD business owners stay consistent without burning out.
In each of those, we’re not fixated on gender, income, or age.
We’re zooming in on the problem and positioning the service as the clear solution.
That clarity does more for your marketing than any client avatar worksheet ever will.
Why This Works
- It makes your messaging stronger
When you focus on a specific problem, your content practically writes itself. You’re speaking directly to the pain point, not trying to force-fit your message to a demographic that may or may not exist. - It helps the right people self-identify
People don’t always identify as “female entrepreneurs aged 35–45.”
But they do say things like: “I’m drowning in admin” or “I wish I could take a weekend off without my business stalling.”
When your messaging matches their problem, they see themselves in your offer. - It allows for natural variety in your client base
Focusing on the problem rather than the person means you might work with men, women, neurodivergent folks, night owls, introverts all united by the same need.
How to Define a Problem-Based Niche
So, if you’re thinking, “This all sounds fab but how do I actually do it?” — here’s a simple approach:
1. Identify the problem you solve
What’s the thing your ideal client is struggling with? What’s keeping them stuck?
Think in terms of headaches, frustrations, time drains, and energy sucks.
2. Get specific about your solution
Not just “I help people with tech.”
More like: “I help overwhelmed business owners set up automated email sequences so they can stop manually sending every follow-up.”
3. Add your unique flavour
This is where your style, tone, and approach come in.
Are you super chilled? Detail-obsessed? Funny as hell? That’s part of your niche too. People aren’t just buying what you do — they’re buying how you do it.
Niche by Problem, Not Just by Person
So if the whole “ideal client” thing has left you staring blankly at yet another Canva template asking what your dream customer orders at Starbucks — take a breath. Then ditch it.
Start with the problem.
Clarify your solution.
Add your magic.
And let that be your niche.
Your people will still find you — not because you guessed their age bracket — but because you get what they’re dealing with and you’ve got the skills to fix it.
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Shelly Shulman 