We spend a lot of time working with our clients on the concept of niche planning in their business. Our belief is that every small business should be a niche business. When you develop a business based on a niche you tend to have better profits and more efficient operations.
Niche planning is one of the most important things most private businesses can do. For most of us, the problem is not finding enough potential Customers. In fact, it’s usually the opposite; what can we do to narrow who we’re looking for.
This means we need to have a clear understanding of who our best Customers are and why we need to narrow our search. Here are some things you might want to consider as your narrow and develop your niche:
- Do a demographic segmentation of who your best Customers are. This means developing both a psychographic and demographic profile of who these Customers are. Your best Customer is someone who you make outsized profits with and who is easy to work with.
- Start developing a value proposition aimed at your best demographic.
- Make sure you are adding value at a massively higher level than your competitors for the niche you want to target. This means putting together programs that help your niche become better at what they do using your expertise.
- Develop a marketing program that lets your niche know that you exist and that you are interested in helping them make their life and or business better. You want to be specific in how you are going to go about doing this.
- Join organizations where those in your niche are likely to be. Get involved in community or trade associations where your niche hangs out. Helping people in your preferred demographic achieve their goals will put you in good stead with them.
I’ve come to believe that all businesses are niche businesses. Larger businesses have larger niches and smaller businesses such as financial advisory businesses should be micro-niche or multiple micro-niche businesses.
The first challenge I find is that most financial services businesses have not identified niches they want to work with. If they have identified a niche, the niche is much too large. The second problem that happens come from firms who have identified niches, but have allowed themselves to drift outside their niche to service people they have not identified as their best and most valuable clients.