Why is it Important to Develop Your Niche?
You need to start developing your Niche and Stop Being a One-Stop Shop!
How many of you are a one-stop shop, and handle generally all types of enquiries that comes to your business? If you are proud of the fact that you are one-stop shop, let me say something, in certain industries, this is seen (by customers) as a definite don’t-buy-from.
But Why? – If you are a one-stop and half your potential customers could view you as convenience, and the other half could view you as a generalist in most areas, not a specialist. Simple, I wouldn’t want a one-stop shop surgeon giving me a kidney transplant!
Think of the needs of your customers. Is there a great deal of trust put in place for them to give you their business? Are you selling products, or services? Do your customers come to you because they were referred by someone they trust, and hopefully they could trust you as well?
I personally (and secretly) have a lot of respect for some businesses that turn away my business because that’s not their “core”, and pass me a good contact instead. I appreciate that they don’t take my money, and make a promise they can’t deliver on.
So many businesses I meet take on work they can’t deliver. And don’t have a niche. In today’s day and age, specializing in an area, gets you well known because it starts with you doing well at it, and pleasing your customers. Word gets around. No better way to market, than your customers own words. REFERRALS.
If you don’t get referrals from current customers. Be concerned. Be seriously concerned.
P.S: Before I start coaching a business, I always ask them if they are getting referrals from current clients. If they are not, something tells me their delivery consistency is a question mark.
When you specialize well,
- Customers know how to refer you, because they know exactly what you are good at. Else, they won’t be staking their reputation and friendships by referring someone who might not do a good job.
- Your marketing and messages becomes consistent. And then it’s easier to stay consistent. Will be strange if you are in wedding catering, and then running a restaurant in the same year. The business models are different, and this might affect your ability to deliver if the areas of business are too diverse.
- You also know how to invest your resources into making yourself a better and better business.
Why does creating and representing a niche work well for small and medium sized enterprises?
- You become really good at what you do, and it becomes easier to train your team too
- Becomes much easier to market yourself, and potential clients start recognizing your ability
- It’s more effective form of Referral Marketing or Word of Mouth Marketing. Its more effective because you became well known for certain areas in the business
- You can determine the outcome of your work better, and in some industries, you are able to charge more with certain clients
- Customers trust you more, as you have delivered to them, time and time again, in the area that you know best.
- Other businesses are more willing to collaborate with you, because you are not likely to take their client away from them by being a Generalist.
We do know some businesses that have every niche covered under one roof, and they do pretty well at it.
When does being a one-stop shop work?
- You hire a specialist for each area of your business. A specialist for Accounting, Tax and Company Secretarial, not 1 person for all 3 areas.
- You run a product-based business – but I have views that are slightly against this as well because your employees might not be capable enough to educate customers on products if they are too diverse. Nevertheless, focusing on certain product lines allows you to achieve economies of scale, and become skilful at selling certain products.
Today’s Tip. Specialize and be great at what matters to your clients. Collaborate where you need to. Work with other specialists, who are good at what they do. Don’t try and do it all, and struggle delivering to clients when your delivery and promise cannot live up to customer’s expectations.
Check out my YouTube video where i talk about why is it important to have your Niche and Specialty.
Maresa Ng is a Passionate Entrepreneur who helps business owner grow their business to a stage where it is commercial, profitable, and can continue to work without them. Maresa has worked with thousands of business owners and she has been turning around businesses since 2008. She was a corporate and investment banker, but now she is the leading Business Growth Specialist & Business Advisor in South East Asia. She always believes, as entrepreneurs, you can have Great Quality of Life through Great Business!