Education

October 30, 2019

One of the hardest things to do for small business owners is owning their expertise. When we start out, we are desperate for customers and will try and satisfy the needs of all types of customers with varying needs. You figure out that the more people you can accommodate, the bigger your customer base will be. So you will make more money, right? But what if I told you that by servicing a select type of customer, you will greatly increase your value? This may seem counter-intuitive, but let’s look at why you need to be the expert your clients need.

One of the main reasons most business owners starting off don’t have a niche is simply because they don’t know what it should be. Sometimes, over time, a niche picks the business. It tends to attract the same kind of customers, either through having a reputation in the industry or because referrals come from word of mouth. But more often than not, the business needs to decide their specialty, and frankly, that can be one of the hardest decisions to make. There are so many questions that need to be answered.

–          What if I get bored or end up not liking this niche?

–          What if I choose the wrong one?

–          I can serve other types of customers, but if I choose a niche, they won’t know that.

–          There are already other people serving this niche.

All of these things are very scary to think about as a new or growing small business. But in reality, by choosing a niche, you are much better prepared to properly serve your customers. And research shows that brand loyalty is one of the biggest benefits of having a niche market. Simply, your customers know you provide what they need, and that keeps them coming back and referring you. Also, by being an expert in your niche, you are able to charge a premium for a service or product that you wouldn’t otherwise be able to. This leads us to the top 5 reasons your business needs to find its niche.

1.) You set your business apart.

When you are running a generalist business, the only thing that sets you apart from other generalist businesses is cost. You become a commodity, and from there it’s just a race to the bottom. When you decide on a niche, you go from being a commodity to an expert that people look to in order to solve their problem.

 

2.) Customers are attracted to specialists.

Think about what you look for when you are seeking a product or 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 business. But what kind of quality are you getting? If I need plumbing work done on my house, I could hire a handyman off craigslist and get it done for relatively cheap. But there is no guarantee on the type of work being done, and more often than not, I will find myself needing to hire someone again to fix the same problem that wasn’t fixed properly the first time. Had I hired a plumber that specializes in my problem, the problem would be fixed correctly the first time. It will cost me more upfront, but I save in the long run, both in time and money.

 

3.) You identify a specific set of problems.

When you are deciding on a niche you need to identify the specific problems your ideal client needs you to solve. In order to do that you need to answer some specific questions.

–          List the top problems that your niche market has.

–          Which do you solve?

–          What is possible once you have solved this problem?

–          What new problem comes up when this is solved?

–          Know the solution for the new problem.

Going through this process helps you identify their unique concerns, how you can fix them, and the benefit of getting the job done correctly.

4.) You become the solution.

Many businesses claim they specialize in something. But their marketing and messaging is all over the place. The website or social media starts creating confusion for potential customers by talking about things that don’t really apply to the target market. Someone who is confused does not make a purchase. They are going to continue looking for someone that solves their specific problem. When you have a clear message on the problem you solve, you’ve now become the solution these customers are looking for.

 

5.) Solving specific problems makes your business a success.

When you specialize in a solution for a specific type of customer, you begin to learn all the ins and outs of your niche. Every customer you serve gives you more experience in your niche and you will actually begin to discover sub-niches within your niche to continue raising your brand value, and you become the go to resource. Soon, with every success your customer has with you, your business gains more success. Before you know it, customers are seeking you out instead of you constantly trying to find new customers.

You may still be thinking that you have too many areas of expertise, but now you know the top reasons why choosing one is so important for your success. Now go become the expert your clients need!

 

 ~ Jon Evans, Capture Create Studios