There are Riches in Niches

Since selling my business, I get asked a lot of questions about my story. How did you start? What was the hardest part? What was the best part?

The most common question?

“What would you have done differently if you could go back and start again?”

And, while there is no way I can pick just one, I do have some common answers. The one I’ve been sharing most often? “I would have focused on serving one industry.”

I heard once on a podcast, “There are Riches in Niches.” And, it stuck. There is so much truth to that.

In my prior business, we did not serve a specific industry. While there were a few we didn’t work with, we didn’t have a niche.

And, if I were to start again, I would consider having one.

Here’s why:

Marketing is easier. Your marketing dollars go further because you know who you’re targeting. Your messaging is clear. You can find out where your target shows up and you can show up, too.

Processes are easier. You can systematize your business. The more similar your customer, the less customization you need in place to serve them.

Hiring is easier. Knowing who you’re serving and how you’re serving them allows you to hire the right people on your team. You can train your team easier with simplified processes.

Everything is easier.

And, the best part? You can charge a premium. When you serve a specific target market, business becomes easier. You can focus on serving your niche well and then become the best at it. You know the lingo. You know the market. You know your customer.

If you’re currently serving a broad market and want to niche down, you can transition slowly. You don’t have to go fire all the clients that don’t fit. Think about who you want to serve. Shift your marketing to focus only on that market. Start saying no to new customers that don’t fit. Then, as you grow in your niche, you can start to transition the customers that don’t fit.

Over time, you’ll become known in the niche you serve. You’ll start getting more customers. Better customers. The right customers.

One of my favorite books that covers this topic is The Pumpkin Plan by Mike Michalowitz. In this book, Mike talks about “pruning your patch.” Figure out your best customers and go find more of them!