The benefits of niching your small business

And why targeting everyone just doesn’t work

2020 has undoubtedly been an interesting year for most business owners. It started reasonably and within months, so many of us were forced to look at the way we worked. Businesses shut and in effect, the workflow for other businesses also slowed down.

We thought we were almost back to normal (in Victoria that is) and wham, we’re back to the same restrictions we started with again.

Many colleagues have taken this time to re-evaluate their business. As a social media marketer, I’ve had many clients look at the way they’re marketing. Is it specific enough? Is it too broad? Is it working?

It’s bought up the discussion around niching a few times.

They know I’ve niched my business from offering multiple services, to now focussing purely on being a social media/content marketer and have been asking me about niching. Hence this blog!

How do niche your small business?

You can niche your business in a variety of ways. You can niche your services down to one (or two) select offerings like I did. Or you can niche the audience you’d prefer to work with. Or, you can make it a 2-step process and niche both your service and your audience!

So, for example, I niched to offering social media and content marketing services. I also have niched my services to target solopreneurs and SMEs. So I went from being a generalist virtual assistant helping everyone I could to a dedicated niched business.

I’ve known a few businesses over the years who start out offering everything to everyone, and then as they develop and grow, they find their passion and niche their business. I guess that’s really what niching is – having a passion and only wanting to work in this arena!

The top 3 reasons why niching works for small business

1. Focussed marketing

Once you’ve worked out your absolute ideal audience or the service (or product) you want to promote, you’ll find your marketing efforts are 100% enhanced. You’ll no longer just have a stab in the dark hoping your messages will hit someone, but you’ll be able to direct your marketing straight to them.

You’ll know exactly who you need to talk to, what you can offer them, and create content that is perfect for them. It’ll take you less time, you’ll get better engagement, and you’ll get better returns on investment for your social media and content marketing efforts.

2. You’ll become an expert

Once you’ve niched, you’ll notice you start getting seen (and tagged on social media) for your area of expertise. You’ll find that people come to know you as your niched business (e.g. I’m often tagged in social media/content management posts). If you’re marketing your business correctly too and sharing your knowledge with others, you’ll build your credibility and reputation in your niche area.

If you attend networking events (even the remote ones right now!), you’ll know to pick out the ones where your target niche will be so you’ll be talking directly with people who want to work with you. Your messages will be specific, and your ideal audience will know you’re authentic.

3. The money will flow in

Most people fear niching as they think they’ll miss out on clients and therefore money. But niching works better than hit and miss marketing. When you directly target your audience and know exactly what you’re offering, you’ll find that you sign on more clients. Even better, they’re likely to stick with you as they know you’re the expert in what you do.

For example, once I niched to being a social media/content marketer, I found that I signed on more long-term, recurring clients than ever before. They didn’t want everything I offered, but once I said I was focussed on one service, they were in! It was the part of their business that pained them the most, and they were happy for me to take it off their hands as their expert in the field.

Here are some more FAQs about niching

What if I miss out on business?

You won’t! You’ll be targeting those who you want to work with or marketing the services or products you wish to provide. Once you’ve got loyal fans, they’ll refer you onto others. They may not be your ideal audience, but if they also love what you offer, they’ll, in turn, buy from you through word of mouth testimonials from your ideal audience.

Is having all my eggs in one basket wrong?

Niching doesn’t mean you have 1 client – that would be bad, and you wouldn’t be running a business (you’d be an employee). You’ll be focused on an industry, a service, a product etc. but you should look for multiple clients within that area of niching.

What if my niche is wrong for me?

If you have a passion for a particular service offering and you niche into that, you probably can’t go wrong. Niching can be more hit and miss for product-based businesses. You may think you’ve created something your audience will love and make limited sales. Learn to do your research and listen to your audience, and you’ll soon find a niche that’s perfect for you.

Have you got any further advice or had success in niching?

If you’ve got any advice to share with others, or you’ve had great success in niching, I’d love for you to share your ideas and thoughts below. And once you’ve decided to niche, if you’d like a hand with your social media or content planning and posting, I’m here to help you!