Being everything is nothing at all
By Andrew Shedden
Years ago there was a song performed by Andy Gibb called "I Just Want To Be Your Everything". While this was a wonderful sentiment for the object of his affections, in the mundane world of marketing it could only be construed as poor positioning. In relationships being everything is a good thing, in business being everything is one of the fastest ways to becoming nothing.
It’s perfectly understandable to want to grow your business by selling the entire marketplace. After all, if you target everyone you won’t miss out on any key market sectors and will enjoy rapid growth. Unfortunately this usually has the opposite effect. Let’s assume you own a company that sells business forms. If I were to ask you who your products are designed for and you replied “everybody” I’d be very worried indeed. I’d also tell you to sharpen your focus as soon as possible.
Remember that you can sell everybody in your marketplace-but not all at once. In fact, if you really want to build your profits you’re better to get your business focused. To accomplish this you need to pick a niche.
There are two main mistakes made by companies when contemplating a niche: too narrow or too wide. Using our business forms company example you can see it would be ridiculous to focus marketing efforts on left-handed litigation lawyers in London Ontario. In this instance you need to broaden your focus. Equally disastrous to the health of your business forms company is for you to pick a niche that’s too broad. If you targeted your business forms marketing efforts to professionals across North America your definition of a niche is far too wide.
How to pick a niche
When picking a niche think of the tale of Goldilocks and the Three Bears. Your niche can’t be too hot or too cold, it needs to be just right. You need the proper blend of concentration and depth.
Ideally you want a niche that’s tightly focused with lots of prospects in a geographically desirable area. Here are a few more questions you need to ask prior to picking your niche:
Can your niche afford your products or services?
Does your niche want your clients or services?
Can you reach your niche?
Is your niche price driven?
Is your niche in a growth, maturity, or decline phase?
Is your niche going to be receptive to the work you most enjoy doing?
Will your niche purchase your most profitable products or services?
Do you have the experience or expertise to dominate this niche?
If you concentrate your efforts on one tightly defined niche at a time you’ll gain market share and benefit in many ways. The following are two of the biggest benefits you’ll accrue.
You’ll dominate your niche
You’ll rapidly raise your profile by focusing on a specific niche. Most businesses within specific niches read the same trade publications, and attend the same business and social events. It’s much easier to become slightly famous in a tightly defined niche than in the world at large. By becoming a sought after expert in your field you’ll gain market share and effortlessly attract more highly qualified prospects.
You’ll raise your level of expertise
Business is becoming increasingly complicated, whatever your field of endeavour. Because the degree of industry-specific knowledge continues to grow exponentially it makes sense to focus on a specific niche. By working with prospects within a specific niche you’ll soon notice commonalities that you can leverage to increase your level of expertise.
If you really want to get big get narrow. Now get out there and dominate.
