|
In the Niche of Time
You’ve
probably heard advice about how it helps to carve out a niche for your
business. But did you know it will also
save you a tremendous amount of time? Here’s why.
When a small
business first opens, the entrepreneur is thankful to take anyone who breathes
and pays their bill. Once the business
fills with customers, the owner can afford to get more particular. They can take a look at what type of clients
they like to serve best, as well as the type of clients they best serve.
Through
targeted marketing, small business owners can begin to attract the type of
clients they prefer. That’s when
defining your niche comes in handy. But
it also saves time in your business.
“Same Old, Same Old” Equals Time Savings
When you
serve a niche, you will see the same client challenges over and over
again. You can create a systematic
process that can be followed for your clients when your clients are more
homogeneous.
As you
become good at identifying the challenges of your niche clients, you can
anticipate the needs of your clients much better and more accurately. There is less breadth to learn. You can take the time you save to learn about
solutions for your homogeneous clients that are far deeper and far more effective.
Depth, not Breadth
As an
example, a small business that serves hospitals, physician practices, and drug
stores with their pharmaceutical products will have three learning curves
instead of one. They’ll grow faster if
they discover which client type is more profitable for them, let’s say,
hospitals, and target more hospitals in the marketplace. If they can generate the same amount of
revenue with 20 hospitals as they could the mix of three types of clients,
their production and marketing costs will be much lower.
There are
even more benefits to developing your niche. When you implement this deeper knowledge that you’ve learned from
serving multiple clients that are alike, your client testimonials will be
glowing. You will develop a reputation
faster within the niche than you would in the general world. Your referrals will speed up.
Developing a
niche not only saves you marketing and sales dollars, it also creates economies
of scale within your staff. They have
less to learn and will surpass their learning curves faster, which enables them
to serve your clients sooner and better.
Have I
piqued your interest about niches? Are
you convinced there are riches in niches?
Riches in Niches
Let’s list
some of the ways a niche can be defined.
- Industry: Your
niche might be by industry, as in construction, health care, or
technology. The more
recession-proof your industry is, the better.
- Service/Product: A
niche could be by service or product, as in tax planning, women’s shoes,
or dog grooming.
- Geography: You can
also narrow your offerings by geography.
- Customer Type: Another way to niche is by customer, such as hospitals, psychiatric
practices, or retirement homes.
- Combination: You
can mix and match for power niche-ing, as in nurses’ shoes, hotels that
cater to traveling rock bands, or nonprofit teen programs.
Is Your Business Already Niched?
To get a
hint of how your business might already be developing a niche, review your
customer list and look for commonalities among your current client base. Look for type of customer, industry,
geography, product/service, and even gender to see if you spot a trend. Group similar clients together to see how
much revenue as a percentage of total sales each type is bringing in.
Once you
identify that you have several of the same type of clients, you can benefit
from productivity gains by standardizing the way those accounts are
served.
Finding a
niche allows you to work smarter, not harder, and keep more of what you make in
your business.
|