How Entrepreneurs Grow by Focusing on Niche Markets
It may seem counter-intuitive to narrow down the base of people that you approach for your product.
You may be thinking to yourself, “It is going to cut my business in half?” Will it? That is what we are going to look at in today’s article.
Let me start by saying that your business will increase, and I going to show you the four reasons why through a case study of my friend Cindy, who owns a small freelance publishing company.
When Cindy first started the company, she was an author who decided to get into ghostwriting as an additional stream of income, and she was stressed out. Every day, she was working on so many projects including blogging, articles, writing books, trying to get her name out there.
She felt like a fish flopping around on a beach, trying to find water. She soon came to realize that she couldn’t do it all, that this pace would kill her. Which leads us to reason number one.
1. As A Small Business You Do Not Have The Time To Cater To Everyone.
You are not a huge company with hundreds of employees who have time to do everything imaginable. As a solopreneur or small business, you have limited resources of time, so it is essential to use them wisely. If you are trying to reach everyone, you will reach no one because there isn’t enough time.
So what Cindy did was look at the skills that she excelled at and came to the conclusion that her best skill was non-fiction book writing. She found that she had more time to create quality work because she didn’t have to spend as much time trying to apply to 50 million jobs and have a custom resume for each one. She took the time to create a highly focused portfolio and then only made minor adjustments to customize it to the person she was applying to.
She was also able to create higher quality content for her clients, which gave her better reviews which opened up more work. That step alone increased her business by 50% because she could now focus in on bigger projects that brought in more money. So, reason number two…
2. When You Specialize, You Can Charge More
When you are a jack of all trades and master of none, it shows in the excellence or better still the lack of, in your work. When you have one skill that you work on, you become very good at it, and people will notice. This allows you to position yourself as an expert and of course those who are the authority in something get paid more.
When Cindy positioned herself as an expert, she was able to charge four times the amount, for the same amount of work, which saved her stress because she could now work on one project instead of many.
3. There Is Less Competition
The more that Cindy specialized, the more that she stood out to potential clients and the easier it became to get jobs. She studied her ideal client and came to understand their needs intimately. When she wrote cover letters for jobs, it was wasn’t…
Please hire me for this job because I have been writing for three years, and I have a diploma from such and such university.”
Her cover letters looked like this…
When I read your job posting, I smiled because you are exactly the type of person I love working with. You are a professional who has a message to share but don’t have the time or expertise, to get it down in writing. I have a solution to that problem…”
She could show that she has successfully worked with other people just like Macy and that was what Macy wanted. She wanted an expert who could understand her, anticipate her needs and meet them and Cindy was able to prove that in just a few words.
4. Allows You To Expand Easily
Cindy then recognized another opportunity for expansion. She connected with other freelancers who wanted to be a part of a team and work for regular clients instead of one-off jobs, who were willing to give quality work for reasonable prices.
She was then able to expand the services she offered and instead of just selling writing services, she was able to offer high-priced package deals including formatting, book cover design, set up on Amazon and marketing materials to promote their books. That allowed her to increase what she charged by 400% while increasing her costs minimally. She was able to pay the freelancers under her a good wage plus additional bonuses and still make money on top of that. She did work a few more hours to keep things organized and check on the quality of the work, but she was paid well for the time.
This expansion allowed her to take on more work because she had a team supporting her and now it was the efforts of many instead of one.
It Does Work
Here are some other things to consider. Your costs to acquire a customer through marketing and advertising on Social Media will go down. First of all, you won’t have to run as many ads. Those ads will also be highly targeted, so you will get more results because it will speak to the person you are looking for. The more results you get, the less you pay per person taking action. So, you are getting more for less.
I challenge you to try this, and if you need help determining where your niche market is, I am here to help. As a small business owner, most days your brain feels like you are on overwhelm with all the tasks that HAVE to be accomplished, that it is hard to come up with new ideas. I get it, I have been there and understand how frustrating it is to try and take on ONE MORE THING. So don’t. Let me use my expertise to help you achieve YOUR goals for your business.
Connect with me and let’s see how we can work together to make your company great and productive with lots of sales! The more you become an expert in one niche, the more fun and money you will make!
416-951-3842 Twitter: @SmallBizSalesCo