Find Your Niche, Find Your Joy
Avoid the scarcity mindset and go vertical to up your value
Why Niching Matters
Right now, we’re all at risk of getting trapped in a scarcity mindset. It’s one of many repercussions of doing business during a pandemic––we try and take on any, and as many clients from within the industry we work.
Instead, lean into your niche. This is especially true for small business owners, agencies, or firms wanting a consistent revenue stream, a loyal customer base, and competitive lead on the supply and demand ratio. Plus, niching better positions you as an expert in your field.
“Having the freedom to focus on a single industry makes it easier for us to identify opportunities to add real value to our customers,” says Geni Whitehouse of Brotemarkle, Davis & Co LLP, an accounting firm that works solely with clients in the wine industry. “When a law changes or new technologies arise, we can immediately identify the impact on our customer base and help them accordingly. For us, it’s about elevating the industry in which we serve, and everything we do comes from that perspective.”
Clients seek out Brotemarkle, Davis & Co. LLP because of their authority in a unique industry. It has upped their value because clients can easily find their specialized expertise, rather than having to sift through all of the generalized firms in the area. Brotemarkle, Davis & Co. LLP only competes alongside other firms with wine industry expertise, a very small pool, and the clients they serve lead to consistent referrals from others in the wine industry.
Firms that focus directly on a single industry know something that others don’t––how to say no. In doing so, they can say yes to the opportunities, clients, and work that directly aligns with their firm's vision, values, and expertise. It’s this ability that makes firms more agile than other practices, especially those that are trying to be everything to every client. It also allows them to provide specialty services, at an expert price, to the exact clients they want to engage.
Identify and Market
There are a lot of other business owners and businesses out there. One of the most straightforward things you can do is identify your target audience and brand yourself and your services with their unique industry in mind.
For example, when clients go searching for a bookkeeper or accountant, the first thing they’ll type into google is something along the lines of, “Bookkeeper for Beekeeper” or “CPA for Creative Professionals.” Having a specific vertical and a standout brand means the clients you’re after will not only be able to find you, they’ll also be able to tell that your services are tailor-made for them.
Right now, new niches are forming due to Covid-19: more remote workers, more entrepreneurs taking the leap, more businesses shifting to adapt. Use this time to zero in on who your skillet is meant to serve. Regardless of what industry you decide to devote your energy toward, there are four things to keep in mind as you consider what industry to choose:
Your level of experience/expertise
The clients you want to say yes to
Where your firm can offer the highest level of value
If your firm can build a standout brand to that particular industry
Branding 2.0
Once you have a solid marketing plan for the new customers you want to attract, think about who you don’t want to work with, and how your branding can repel those incompatible clients away.
Branding 2.0 is where you get crystal clear on your values and how you bring those to life. A big part of that is understanding that you’re not a fit for everyone. Your unique niche is meant to serve those you feel proud to work with, want to emulate, and get referrals from. When you know who’s a perfect match and who’s not, it actually maximizes your marketing dollars for the optimal ROI.
“We’re really clear about the kinds of clients we work best with and it helps us create our marketing because we know exactly who we’re talking to,” says Patti Scharf, co-founder of Catching Clouds, a firm that focuses solely on working with e-commerce clients that are generating $1-50 million in annual revenue. “And more importantly, it helps us identify who we’re not going to be working with. It is because we say no to the [clients] that don’t fit, that we’re such a great provider of services to the people that are a good fit.”
Does It Spark Joy?
Niching is about much more than choosing a core industry. It’s about surrounding yourself with work, colleagues, and clients that you enjoy working with. There’s an interpersonal side of selecting the right clients that’s deeper than picking an industry vertical.
Instead of trying to stack up as many customers as possible, scope out each potential project or client to see if they’re actually a good fit. Do they share similar core values or ways of doing business?
“I spent my morning talking with women that are taking the big leap into starting their first company,” says Fearless founder Madeline Pratt, when asked about a typical work day. “My team will get to support those women as they bring their big ideas to life. I get to do all the things I love most every single day, with the freedom to be my whole self in my life and business.”
That’s one surefire sign you’re on the right track.