Many business owners are resistant to the idea of focusing on a niche market. A niche is simply a focused, targetable part of the market.
They argue that it doesn’t make sense to limit themselves to a small group when, in fact, their product/service applies to multiple groupsbasically “anyone who…..”. Let’s take a moment to understand why this way of thinking couldn’t be more wrong.
When you are a “generalist”, your marketing has to appeal to as many people as possible to be successful. In contrast, if you are focusing on a niche market, suddenly your marketing becomes much easier. The more you know about and understand your niche group, the more focused your marketing can become.
You will spend less money marketing with a higher rate of return. You can identify and address your niche’s particular pain points; you can educate yourself about what your client wants and needs; you can become an “expert” in that niche area.**
As you are developing a client base in your chosen niche area, networking also becomes easier. First, you know exactly what you are looking for in a potential client so you can ASK for it.
When you are at a networking event or seminar, you can describe your ideal client and then ask for referrals of people that fit that description. Likewise, networking partners and associates can more easily sort through their client list if they know exactly the client type you desire. You will get better, more qualified leads if you can clearly convey what you are looking for and who you want to work with.
Finally, once you have successfully made a name for yourself in your niche market, feel free to explore another. The transition to incorporate another niche area will be easiest made if it is in an area related to the first. Be careful not to overextend yourself before you are ready. It’s best to focus on one niche, conquer it, and then seek to add another for the greatest success and growth.
In summary, focusing on providing a specific service or group of services to a specific niche market makes smart business sense. You will be able to work smarter instead of harder, ask for referrals for the particular type of client you desire to work with, and you will have a focus to know which events to attend, which networking partners to approach, and how you should market to your specific niche group.
Rather than limiting your sales, niche development opens the doors to greater success and greater opportunities!
**A word of cautionbe careful with the word specialist. Unless you carry a designation that specifically enables you to use the term, make the distinction instead that your focus is on a specific service for a specific group.