How to make the most of niching down in your business
There comes a time in every business owner’s life when they realise that they don’t want to service everyone anymore. And so they decide to choose a niche.
But no sooner do they announce it on social media, they start worrying that maybe they’ve niched too much. They have gone too specific with who they’ll work with.
It’s a common fear that makes total sense. You are technically reducing the number of clients you want to work with.
But niching can actually be a really good thing for your business.
I interviewed Hayley from My Client Strategy to talk more about niching.
Hayley Robertson is an MBA-qualified Marketing Strategy Coach and Business Mentor for service-based small business owners and the founder of the online marketing coaching business, My Client Strategy.
Through her 1:1 marketing coaching programs and once-off strategy sessions, Hayley helps you break through the barriers that are holding you back, so you can choose the clients you want to work with, charge what you’re worth, and get the freedom and flexibility to spend more time doing what you really enjoy.
Hayley also teaches members via her online marketing membership, the My Client Strategy Academy, how to attract consistent clients and grow your service business in a simple and non-complex way, alongside a supportive community at each step.
So Hayley, what is a niche market, and does every service-based business need one?
A niche market is a specialist area or place where you decide to position and sell your services.
Your specific niche market will be defined by considering each element of the marketing mix:
Product – the types of services you’ll sell and the clients who will buy them
Place – the geographic region and location you’re going to sell your services in
Price – the level at which you’re going to set your prices
Promotion – the marketing messaging and channels you’re going to use
By combining these elements and conducting some market research, you’ll be able to define the parameters for your niche market and estimate the size and opportunity it represents.
I recommend that all service-based businesses define a niche market for their services because it will help to design and create services that will be in greater demand because they solve a pain point for a specific type of client.
When you’re positioned as a specialist in an area, it also helps to build trust with potential clients that you’ll deliver what you’ve promised.
It’s also critical to consider your business strengths, who you want to work with, and where there is a viable demand for your services when defining your niche.
Ideally, the best place to position your services is where you can factor in each of these elements, so you’re building a business you’ll enjoy and one that is set up for success.
Are there any signs that a business should niche further?
As a service business owner, you should consider further niching your market if you’re not seeing success from targeting a wider and broader market.
This may require you to consider a more focused effort in a particular region or to redefine some of your services so they are more specifically designed with a client in mind.
If you’re struggling to get your message to cut through, then this may also be a sign that you need a better definition of your niche.
A more defined niche will help you to get clarity and craft more succinct messaging that stands out and resonates with your ideal clients.
So you’ve chosen your niche. But, can a business owner niche down too much?
It’s not as common, but it is possible to select a niche market that is too small to enable you to build a sustainable business.
So, it’s essential to research and estimate the size of your potential niche market when you define it so that you know there is enough demand there for your services to sell.
What’s one of the biggest misconceptions about niching?
The biggest and most common misconception about niching is that it will reduce the available market you can sell to, and therefore reduce your sales as well.
However, it’s not the case – the opposite happens, in fact!
When you niche your services, there is so much more clarity around everything to do with your marketing.
Your messaging stand out better because it speaks and resonates with one type of client.
Your services are better designed because they solve specific pain points.
And you’ll stand out so much more than your competition and generate more sales enquiries because your clients will know exactly what you do and how you can help them.
You’ve mentioned that niching can be beneficial for your marketing. How can a business owner use their niche to better market their business?
The biggest benefit of selecting a niche is that you can use it to your competitive advantage.
You can use your niche in your marketing to build authority, trust, and credibility so you become the trusted ‘go-to’ person in your industry.
It’s likely that you chose a specific niche market because it’s where your skills are the strongest, where you have a qualification or what your experience is.
So, be sure to highlight those on your website and in your social media content so that your potential clients will trust you enough to reach out and work with you.
Hayley gave some great tips for service-based business owners. Being a service-based business owner myself, here were my biggest takeaways.
Niching allows you to build trust and create services that will be in greater demand because they specifically target a common pain point of your target clients.
It’s easier to craft your messaging when you have a niche.
There is such a thing as niching too much – always ensure your niche is big enough to make money.
Your niche can be your competitive advantage. Use it to become the go-to person in your industry.
