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5 Reasons Why Niching Down is Important

5 reasons why niching down is important

If you’ve been in business for a bit, you’ve probably heard the phrase “the riches are in the niches”. And, you’ve probably thought that can’t be true! 

You question the phrase and wonder how you can possibly build a successful business by niching down and only specializing in one thing. You also wonder how limiting who you work with can be good for business growth.

Well, I’m here to tell you that it IS true and it’s also incredibly important to consider when designing your website as well. In this blog post I’d like to share 5 reasons why niching down is important. But, first let’s back up and define what a niche actually is.

So, what is a niche? A niche is a smaller segment of a larger market that has its own unique characteristics and needs. A niche can be a specific service you offer, a specific industry with which you work, the location in which you operate, your price point (discount or luxury), or the way you deliver your services.

So why do you need a niche? Simply put you need a niche because it helps you find the right clients and it helps the right clients find you.

Let’s take an example. If you’re a professional organizer you’re operating in an extremely saturated market. But, if you specialize in offering your residential organizing services to busy moms in the greater Boston area who don’t have the time or energy to organize their homes themselves because they have a full-time job and kids who are learning remotely, then you’ve just niched down and will attract those women looking for what you specifically provide.

Now, let’s get more specific and discuss 5 reasons why niching down is important:

1. It will help you market your services

Knowing your niche can help you determine who your ideal client is. Defining your ideal client does not mean that that is the only person you’ll work with. It means that is who you’re speaking to in your marketing. You understand this person and you can write content and design graphics based on what will appeal to them. Remember, if you speak to everyone you speak to no one.

Defining your ideal client allows you to do the following:

  • Show up where they are so you’re not wasting your marketing efforts.
  • Understand their specific problem so you can provide the solution.
  • Write your content so it appeals to them.
  • Design your website so it attracts them.

2. It will help you be seen as an expert

Clients who are willing to pay good money for a service want to make sure that service is being provided by an expert in the field. If you’re a Jill of all trades you won’t be viewed as an expert. It’s tricky to become an expert in every part of an industry so specializing, or niching down, is the better approach to take.

Here’s an example; if you’re looking to hire a website designer for your home staging business, wouldn’t you prefer to hire someone who is focused on website design and has experience working with your industry versus someone who does website design and a bunch of other stuff as well?

Niching down will help your business appear more credible and professional than your generic competitors.

3. It will help you attract your ideal client to your website

When you sit down to design your website, it’s important that you have an understanding of who your ideal client is. If you don’t, how will you know who to design for? Your entire website should be built with your ideal client in mind in order to be effective.

Think about it…if your ideal client are retired couples who are 65+ years old you are going to design your website very differently than if your ideal client is 20-30 years old.

Also, your website needs to show you understand the problems of your ideal clients and that the service you offer will provide the solution they need.

4. It will help with your SEO

With so many potential clients searching on Google for what they need and so many more businesses having an online presence, it’s increasingly important that you rank in organic searches.

Most people will not go past page one or two of a Google search. If you niche down in your service, your location and your ideal client, it will be much simpler for you to focus on specific keywords, create content for a specific audience and optimize your website’s SEO to reach your ideal client.

5. It will help you be more authentic

These days people want to work with people who they know, like and trust. It’s increasingly important that you and your brand come across as authentic.

It’s also important that you share your story. Defining your niche is the first part of telling your story.

Also, think about this …. if you specialize in a service that you love to provide and you provide it to a market with whom you love to work, you will be more authentic. Being authentic will result in a bond and you will be more closely aligned with your clients.

It can feel scary to narrow down the scope of your business and it may take some trial and error to get it right. But once you do, you’ll find it’s far easier to build a successful business if you’re passionate about what you do and who you do it for.

If you found this information about niching down helpful, I hope you’ll share it with others who may benefit from it using the links below.

If you’d like to start the conversation about working together, please fill out the client application form and I will be in touch to schedule a complimentary introductory call.

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