What is a niche?
A niche can be described as a segment of a market or industry. There are various market and industries, we have the fashion industry, wedding industry, entertainment industry etc. Industries are further broken down into different sections and sections into segments and it goes on and on until there in no more division.
Before starting a business it is important to find out which industry your business falls, then narrow it down to a section and then a segment untill you are comfortable with the category your business falls. Using the Fashion Industry as an example, the fashion industry can further be broken down to clothing, shoes, accessories etc. To get a niche in the fashion industry, if you have decided to sell female casual wears; You will need to break down from the fashion industry to Clothing to women clothing to casual wears.
The advantage of having a niche can not be over emphasised, it gives you a more precised market or group of people to sell to, who will also be interested in what you want to sell. That way you have a target audience and it is easier to advertise and push your products to them.