Top 5 Reasons to Choose a Niche Market
Do your clients fully benefit from all your skills and knowledge? Research reveals that most accounting professionals undervalue their expertise. Although it seems counter-intuitive, serving a select population significantly raises your value. Plus, it’s easier for new clients to find you.
Sometimes, a niche population chooses you. You gradually notice that most of your clients come from a specific industry, or share a similar issue. Either you already built a reputation because you previously worked in this industry or your clients came from word-of-mouth referrals.
More often than not, you decide on a specialty, rather than a niche choosing you. Committing to that choice is one of the toughest things to do.
So, you wonder:
- Will I eventually get bored?
- What if I choose the wrong niche?
- I can serve other markets, but they won’t realize I can help them.
- What if my credentials get challenged? I don’t have enough experience with that population to call myself an expert.
- Another firm is already serving that niche – is there enough for both of us?
Omri Erel of Product2Market considers brand loyalty one of the major benefits of developing a niche market. Your clients know you provide what they need.
Specialization is an easy way to earn more money without additional time spent working. This strategic move allows you to charge a premium rate for your services.
Here are the five top reasons to choose a niche market.
1. Set your business apart. Let’s face it, generalists constantly compete for clients. That’s because the only differentiator between you and another provider is time and cost. Both of those things are commodities, which makes it difficult for a potential client to recognize your value.
In the beginning, you may experience a feast and famine cycle. During the dry spells, your phone stops ringing. That’s when you’ll wonder how your business can possibly survive.
Things do get better. Clarity emerges once you choose your niche market. You become crystal clear about the specific solutions your ideal client wants and needs.
That’s exactly what Kim did. She decided to offer bookkeeping and tax solutions for realtors. She started attending realtor association meetings. One specific realtor couldn’t keep her bookkeeping records up to date any longer since she’d gotten so busy.
When it was Kim’s turn to speak, she didn’t talk about the fact that she does Quickbooks® Online. That was too vague. Instead, she shared her solution for busy realtors. She works with them to increase their income, reduce their tax bill and maintain their bookkeeping.
This particular realtor introduced herself after the meeting. Kim’s targeted message got her attention. This realtor was searching for a bookkeeping solution that would free up her precious time.
Furthermore, realtors know other realtors. They flock together. Pretty soon, word-of-mouth had other busy realtors knocking at Kim’s door.
Kim’s clear message stood apart from other bookkeepers. She no longer competed with the generalists who offer a broad spectrum of solutions. Eventually, Kim let go of 30 percent of her old clients that no longer fit her services; plus, she doubled her income.
2. Clients are attracted to specialists. Consider what you look for when you’re seeking a service. Do you prefer a business that offers a wide variety of solutions, or one that specializes in your exact problem?
You may save money upfront with a generalist. Sometimes, however, the problem doesn’t really get fixed. Then, you need to hire another company to clean up after the first job.
Typically, a specialist offers a less frustrating experience and completes the job faster. Value-based pricing emphasizes expertise instead of time. Although the rate is higher, it’s more cost effective in the long run.
Shorten Your Sales Cycle
Solving a specific burning need shortens your sales cycle. Potential clients either view your business as the solution to their problem or trust you to achieve a specific result.
3. Identify a specific set of problems. Ready to choose a niche market?
- List the top specific problems for that target market.
- Which do you solve?
- Identify what’s possible after their problems are solved.
- What new problem arises once the first one’s fixed?
- Know your solution for the new problem.
You’ve now identified their unique concerns, how you fix those things and the benefit of getting the job done.
4. You are the solution. Some entrepreneurs claim they specialize. However, their messaging is all over the place. Their website and marketing materials create a confusion because they discuss a variety of things that don’t truly apply to that target market. It’s like they said they specialized, but didn’t really commit to that particular niche.
Well, a confused mind doesn’t buy. Instead, those potential clients move on. They continue searching for a business that specifically solves their problem.
Create a clear message that describes the realities for that niche. Emphasize the ideal solution you offer. Then, teach them how you solve their problem.
5. Meet exact needs to make your business a success. Become keenly familiar with the ins and outs of your niche. You gain expertise with each and every client you serve. Plus, you’ll discover sub-niches within that population. This starts to distinguish your business as the go-to resource.
As you create success for your clients, you build success for your business. Then, business starts seeking you out instead of you chasing new clients.
Find Your Niche Clients
Once you choose a niche market and identify your ideal client, it’s time to stop being a best kept secret. Go out and let them know you exist.
Identify where your potential clients hang out. Then, start to offer solutions.
- Online groups and chats. Participate, listen to questions, answer questions and become known in the community.
- Network locally. Go to association meetings. Meet your potential clients face to face. Offer to speak at meetings.
- Social media. Write articles and post them, especially in groups and communities where your ideal client hangs out.
Don’t expect clients to magically find you. You have to give first before you can expect to receive.
It’s okay to freely give away rich information. Don’t worry about sharing too much. You won’t ever give away everything you know. Give enough and your niche market will seek you out because they’ll resonate with your message.
Be the Niche Solution
Now that you understand the top reasons to specialize, you may discover that you possess several areas of expertise. Deciding which area is the right one for your target niche is a balance between your skill set and your mindset.