Finding Your Niche Market
Finding Your Niche Market
Be a specialist, not a generalist
“Build something 100 people love, not something 1 million people kind of like.” - Brian Chesky
That quote from Brian Chesky the co-founder and CEO of Airbnb really summarizes perfectly about what niche marketing is all about.
Here is an example that just about everyone can relate to about how a niche market works.
Many of us have a primary care doctor. Some of you may have seen the same one your entire life. The annual checkup is more like a time to catch up on what’s going on in life. You have an amicable relationship. Now if you do have a health condition or serious concern arises, they’ll refer you to a specialist trained to address the health issue with the expertise to ensure the best care possible. They’re sending you to the expert because they’re more of a generalist. The specialist is working with patients in their niche area of expertise.
In much the same fashion, finding your niche is like being a specialist in a field where your expertise makes you stand out from the general pack.
By carving out a niche market and positioning yourself as the go-to for a specific audience it not only establishes your credibility over competing generalists but also results in a more focused business. You’re positioning to provide your product or service to people of a certain occupation, hobby, interest, demographic, income level etc.
When working with common friends and acquaintances with similar interests, how high do you think your closing ratio or likelihood that they become a client is? How high do you think their retention is and low the churn? About the best you’ll find. It forms better client relationships. You’re the expert and go to in your niche. It establishes off the chart levels of trust. After all that’s what business is built upon.
When you have a niche business that you're passionate about, it will be easier to identify your target customers and build your business.
The first step is identifying and knowing who your ideal customer is. I covered this in the past in a post called Who is Your Customer? Identify and market to who you want as customers
Once you know your target market, develop niche related content centered around your targeted niche audience. You're building a market and connecting within that niche community.
In the past I’ve written about the timeless blog post by Kevin Kelly called 1,000 True Fans. If you haven’t already read it, you should. It perfectly encapsulates focusing on a niche.
How do you differentiate in business? How do you stand out among a crowded or competitive industry?
It starts with what you’re saying and how you're different. You need to find a way to be unique and different. When you try to sell and appeal to everyone you appeal to no one. Jack of all trades, master of none.
Be the best in your niche. Become the expert. You’re the go-to. Build an audience or stable of clients centered around you niche. You’re identifying the problem, creating a solution and fulfilling their needs.
If you recommend or advise something odds are they’ll listen to you.
Once you’re an established expert within your niche imagine all the referrals that come your way. Your web grows organically by word of mouth.
Some struggle with what their niche market could be. Where should you begin? The opportunities and ideas are endless. Be as specific as you want. Aim to have common interests and rapport with the clients you serve. You're more comfortable being around those who share the same interests. Otherwise you feel like a fish out of water. You're uncomfortable. So change to feeling comfortable and confident.
In addition, think about what your special skills are, what do you enjoy and what are you good at? Have a passion for what you do.
Look at who your friends are, what do they do? Who you associate with? What is it that you find yourself doing in your spare time? Is there a common theme developing here?
Every type of business can serve or have a certain niche client. Here are some examples of finding your niche in the financial advisors space. Certain advisors will only work with Delta airlines pilots, millennial business owners, doctors, nuclear power workers, plumbers, and the list goes on. But you see the niches being built.
Maybe your business is only going to work with homeowners, farmers/ranchers or married couples. Or you have a family history in a certain industry such as construction, plumbing, electrician, landscaping, masonry, sports, or coaching. Expand off that expertise and history to target people within those industries.
Your business may be in the construction related industry. Maybe you only do work for a single contractor. Or only do work on new homes. Or only by referral of your past clients.
If your passion is cars, gardening, cooking, bourbons, beer, fishing, hunting or bowling you can create a niche and be the expert around one of these.
Lawyers have their certain area of expertise that they specialize in within law now. Doctors as we know have their areas of expertise. But they’re becoming even more specialized. I heard on a recent podcast that there are now surgeons who will only operate on thumbs.
Talk about a narrow focus and expertise. If you have an issue with your thumb aren’t you trying to get an appointment with that surgeon?
Be like a thumb surgeon. Focus in and narrow your expertise to a niche that you have a passion and love for. Aim to be a specialist, don’t be a generalist.
The Coffee Table ☕
Speaking of Kevin Kelly and 1,000 true fans. He was recently on the Tim Ferriss podcast. Excellent Advice for Living #669. You just know with Tim interviewing one of the more interesting people in the world that this would be good and it was great.
I recently listened to William Green interview Jason Karp on the We Study Billionaires podcast. Wealth & Health with Jason Karp. Jason’s story about being a top hedge fund manager and just walking away while on the top of the mountain to focus on a health food company was inspiring. He now owns a stable of leading healthy food brands. This was a terrific listen about entrepreneurship, wealth and the importance of healthy eating lifestyles.
Now on the opposite side of eating healthy. Don’t expect the cost of your steak to go down anytime soon. Patrick Thomas wrote a piece in the WSJ, Why Your Steak is Getting Pricier. I’ve noticed the much higher cost of steak but I was not aware that ranchers are shrinking cattle herds over drought and high costs, which is now cutting down the U.S. supply.
Source: WSJ
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