A friend asked me this question: “If you could give a client only one piece of advice, what would it be?” Easy answer: Choose a target market.
On the one hand, it seems to make sense that if you sell your products or services to a vast set of demographics, you will make more money. However, the exact opposite is true.
Most entrepreneurs are resistant to defining their niche usually because of the following beliefs:
- If I choose a specific, niche market, I will lose business.
- If I choose a target market, I will be stuck with it forever and I thrive on variety.
- The more I have to sell, the more money I’m going to make.
I hear those statements all the time and at best, they are false. At worst, operating in those beliefs will sink your business.
In his book “Purple Cow,” Seth Godin tells us that the market is very good at ignoring you, just as you’re good at ignoring the market. Think about all the emails you delete before reading, the times you click “unsubscribe” and the T.V. shows you Tivo so you don’t have to watch the commercials. What’s the solution? The answer is “niche.”
Benefits of Having a Niche Market
Defining your target market:
- Allows you to become an expert to that market
- Multiplies your referrals – the more specific you are about who you serve, the easier it is for people to send business your way
- Keeps you focused
- Streamlines your marketing efforts and dollars
If you’re still not convinced, sit back, relax and prepare to laugh. This YouTube video says it all: Why You Need A Niche