Are You A Niche-Aholic?
I admit it, I’m a niche-aholic and by the time you finish reading this post I hope you are too. When I think about any business I’m involved with, I think about developing a niche or finding away to shrink the market segment I serve. I’ve learned that when a business stays within a niche they outperform businesses that try to be all things to all people. Here are some things that will help you decide if being a niche-aholic is for you.
Start with knowing what a niche is.
A niche is not a market segment. For example, if you’re in the financial services business and you say your niche is someone who has $500,000 in investable assets, you have no niche. What you have is a market segment. If instead, you said that my niche is someone who is 55 years old, works at Genzyme, the biotech company and is a senior director or higher, you have a niche.
If you’re thinking that you couldn’t build a business based on the description above, think again. If this is a niche you have expertise and know all of the ins and outs of what senior executives at Genzyme have for compensation packages you can add more value than any other financial planner. And I bet there are hundreds of potential clients that fall into a group like this.
You become an expert in your niche.
If you work with the same group of people on a regular basis you will become an expert on the needs and language of this group. This allows you to not only speak their language but also build rapport and trust quickly.
You’re going to be able to demonstrate that you know what their problems are. You’ll be able to provide better advice because you spend more time thinking about problems and opportunities they might have.
Why?….it’s really pretty simple. When all of your clients come from a small group, you’ll naturally think about what you can do for them in a deep and meaningful way.
You become much more profitable.
When you have a well-defined niche, you find that your clients all have similar needs and wants. You can develop programs that fit many in your niche and you don’t have to re-invent the wheel every time you work with a new client. You will become more efficient and as a result will have a lower cost for servicing people who are in your niche.
You can charge more money.
Niches by their nature are very small groups of potential clients. If you truly understand and can demonstrate you know how to add value for your niche you become more valuable than your competitors to your clients. If you demonstrate that you add more value, you can charge more money for your product or service.
When you become an expert in a niche you’re going to find ways to develop new products and services your clients need. If Genzyme senior executives are your niche you can help them take advantage of their benefit program better than other planners who only serve one or two people from the same company.
You will have better Customer loyalty.
When you develop and understand the niche you work in, you will find your clients become more loyal. Since you are speaking their language and know how to build rapport and trust, competitors who are not experts in your niche will have a hard time breaking into the niche you serve.
You will have more fun working in a niche.
Since you’re an expert in a niche where you deeply care about the success of people you serve you’ll have more fun and be more satisfied. You’ll spend less time convincing potential clients to do business with you and your present clients will adopt more of your advice. Not having to always prove yourself can be a fun and liberating experience.
Let’s face it there really isn’t a good reason to not develop a tightly focused niche. You have the opportunity to develop tight relationships with people you know a lot about. You are going to be more efficient in your work. You get to charge higher fees and find it easier to attract new clients. What’s bad about this?
So, have I convinced you that you want to join me in becoming a niche-aholic? I hope the answer is a resounding yes.