Want to make it easier to find people who want your product or services? Instead of saying, "This is great for everyone", you want to say, "This is great for you." This article details how to simply and clearly define your narrow offering.
Definition. A niche is a group of people with a narrow common problem. While you could have a niche of people who want money, a better niche might be "people who want money to pay off credit card charges" (and perhaps, "people who want money to pay off credit card charges incurred by purchasing clothing").
Benefits. From your client's perspective, a niche means that you understand their common problems. From your perspective, niche prospects are easier to find and you can charge them more for your specialized offerings.
Danger. Some people think choosing a niche means that you'll miss potential clients (who would benefit from your offering but aren't in your niche). You can't be all things to all potential clients. If you must, pick more than one niche.
Classify. What's common about your existing clients? What group of people would you like to work with?
Brainstorm. Niches are adjectives. Look through lists (ex: http://simple.wikipedia.org/wiki/List_of_simple_adjectives/). What are people searching for online (ex: inventory.overture.com/d/searchinventory/suggestion/)?
Let's take the example of Peter, who's a life coach. While he can help anyone working on their problems, he likes working with men. Men with what problem? Having recently been divorced, he understands the process and wants to help men who also have recently been divorced. He could even specialize further (men who have been divorced because their wives fell in love with someone else, etc.). He's now a specialist, and his marketing materials would target his demographic.