Why Niching Down Helps Build Your Business
We get it, the thought of limiting your target market by niching down can be scary, especially when you’re just starting out. You feel if you only service a particular group of people, you’ll limit your chances of landing clients and making more money. But the truth is, niching down does the very opposite!
WHAT IS A NICHE?
A niche is a specialised or focus segment of a market. When we talk about niching down in your business, we are referring to identifying a specific group of customers within the larger market that you serve.
WHY SHOULD I NICHE DOWN?
1.You cut down on competition
One of the most beneficial reasons to niche down is that you’re limiting your competition. If you’re offering a general service -say, personal training - you’ll compete with thousands of other personal trainers in your area.
If you choose to niche down and focus on training clients in the pregnancy/postpartum niche, you’ll face less competition and be more likely to pick up specialist clients. The result; your competition shrinks as you only compete with other personal trainers within the same niche, which there are a lot less of.
2. Your marketing messages become more effective
Identifying a niche target audience will allow you to really hone in on a particular focus. You’ll be able to better understand the specific, unique pain points of your ideal client, which will help you through each stage of the sales process. Your marketing efforts will be more targetted and appeal to your audience directly helping you to bring in more leads, you’ll be able to address the specific pain points your target audience face in your sales pitches which will help you sell your value and land more clients, and your actual services will become more targetted helping you to keep clients for longer.
Remember, if you’re speaking to everyone, you’re speaking to no one!
3. You build trust and loyalty
Targetting a niche audience will help you build a loyal customer base. You’ll notice that your clients will trust your business more because they feel like you really understand them and their needs. Therefore, they’re more likely to return to your business in the future because they’d rather do business with a brand that focuses solely on their problem.
Don't get complacent though! If you start to become too confident that you are your clients’ only choice, you may start slacking off, miss a trend or take your clients for granted. They’ll notice and take their business elsewhere. You need to constantly strive to WOW your clients.
BUT, I’M AFRAID TO NICHE DOWN...
A common objection a lot of new businesses have when discussing niching down is that they feel it will cause them to have fewer clients. The truth is that when you fail to niche down, you market yourself so broadly that it ends up diluting your message. This leads to you attracting fewer ideal clients, meaning that when you try to sell your product or service, less people are interested in buying from you because they are unsure if you’re the right business to help them.
Put yourself in a customers shoes for a second here...
Let’s say you’ve just had a baby and want to return to exercise. You jump online to do a google search for a new personal trainer in your area and find two options. Trainer A's website doesn’t really make it clear what area they specialise in, whilst Trainer B's website clearly outlines that they specialise in working with clients who are postpartum.
Which trainer are you going to pick?
Of course, you are going to pick trainer B! Why? They are clear about exactly who they serve, and as a potential client, you feel more confident that they will be able to help you manage your exact problems and concerns. All because they had a clearly defined niche that positioned them as an expert in the area you are searching for!
At Iron Advisory, we help ambitious business owners become more profitable and create the lifestyle of their dreams! Not only are we qualified accountants and advisers, but fellow business owners. We’ve built our consulting practice and gym wear brand from inception to a 6 figure turnover, and we want to help you do the same. You can book a free and no-obligation consultation with us here.