“Pick a niche”. I’m sure it’s advice you’ve heard before as you researched how to create and grow your business. But maybe you’ve wondered what makes it good advice? Well, let’s get into some of the main reasons why choosing a niche gives your business a major advantage and why it is especially helpful when you’re starting out.
Also read: Why you need to define your ideal client
1. Start attracting more clients with a targeted message
Another service-based entrepreneur once said to me “a niche is small but big”. Sounds a bit nonsensical, doesn’t it? Here’s what she meant by that statement and why it’s so true.
Firstly, choosing a niche means narrowing down your focus. That means selecting to work with a smaller target market than you have the ability to serve. You’re shrinking down your ideal audience. Going smaller.
A big reason why so many entrepreneurs struggle with niching down is that they don’t want to exclude anyone they think they can serve. By narrowing down their focus, they think they’ll be cutting out too many potential clients.
What they’re not realising, is that by being more niche, they can deliver a more targeted message. By narrowing down the focus, they can actually reach more people at a far more impactful level. This is because focusing down on a niche allows you to go deep. Your branding and marketing has the power to resonate so much more to your ideal clients. Your message will speak more directly to people in a way that tells them you identify with their struggles on a deeper level.
When you’re too general and you haven’t chosen a niche, your message is going to be too vague. Too broad. It doesn’t get to the heart of any one specific problem which is why it’s so hard to gain traction.
Having a well-defined niche means your potential audience is smaller, but because your ability to reach them is stronger, you’ll actually be likely to reach more people. You can build a bigger community around your brand and gain more clients who feel they absolutely need what you offer.
2. Go deep in your knowledge and experience in a specific field
When you have a niche that you work in, you’re going to gain deep insights and learn important information that’s very specific to what you do. Not only is having expansive knowledge and experience good for your business, but it’s incredibly valuable for your clients.
You’re able to provide a service that goes far beyond the surface-level stuff that generalists in your industry can do. You’ll know the ins and outs so well that you can get results for your clients that transform their lives or their own business at a far greater degree.
You’ll also be able to develop a finely-tuned process and systems that allow you to work more efficiently and get the best possible results.
3. Build a reputation as a specialist
Continuing on from the last point, choosing a niche makes you a specialist. You can become known as the go-to person when it comes to a particular type of service. This helps you to gain market share and be the leader of your industry.
Building a reputation as a specialist has amazing value for your brand and increase awareness for yourself and your brand within a well-defined space. Your services will be seen as being higher quality and higher value and clients are more likely to seek you our (instead of you having to constantly chase down leads).
As you build your reputation and become more visible, demand for your services increases and you can choose to be selective about the clients you choose to take on.
4. Charge premium prices that your clients are happy to pay
The last benefit I’ll list here is perhaps the most attractive. Because let’s face it — earning more money is a key goal for many of us.
Choosing a niche and specialising your services gives your business a strong point of difference and a way to stand out from your competition. Now, your audience have more information that they can use to compare two services. Between a service with a long list of offerings that happen to include the solution their looking for, and another service that might be more expensive but clearly speaks to their unique struggles, the choice is usually pretty easily.
By honing your abilities to solve a very specific problem you’re able to charge more for your skills without objections from clients. As a specialist, your time, experience and expertise is worth more than that of a service-provider whose offerings are broader and less precise.
Not all people can afford higher prices. However, for the right client receiving a targeted service is worth the price tag.
So, there you have it. 4 major benefits that come with choosing a niche for your service-based business. But even when you’re aware of the benefits, actually choosing a niche is where you might be getting stuck. If that’s the case, consider booking a clarity session to gain some insight and be pointed in the right direction. It’s free! Book here.
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