It is a common belief early in business, the more you can offer the more clients and customers you can help. Thus, more profits, right?
The truth is that is incorrect.
If you aim to serve everyone you will end up serving no one.
No matter what stage you are in with your business, creating a narrower and more defined niche will increase your profitability and decrease your clientele pool.
It might sound counter intuitive at first. But when people are going out to look for something specific you want them to seek YOU out because you are a specialist at what you do.
This will take you from a generalist to a specialist. Someone who must hunt down clients to someone that is sought after.
With that in mind, you can begin to think about a very specific pain points in your industry to target. That is where the higher profitability comes in.
When you are providing specific value to your customers in a very real pain area, you are able to charge more as they are wanting it fixed quickly.
As a consultant, instead of saying “I help businesses with their operations”, you can truly define your niche with something like, “I help business define and improve their processes for sustainable growth and higher profitability when they are making between $30-100k per month as a business.”
As a CPA, you can charge a higher fee and define your target market by targeting construction companies who currently make $1-3 million per year.
It might seem scary to narrow down your market, as you remove possible clients, but by doing so you are able to create higher value with your product/service and are able to target a very specific group for marketing purposes.
When you become the specialist in your defined niche, you will begin to see more clients and more revenue. Without adding anymore work.
Concannon Coaching 