When you own a niche you are perceived as an expert in that niche. (And you will become an expert in that niche over time, if you aren’t already.) Customers feel more confident when they perceive you as an expert, and it’s easier to stand out in one area.
2. Clear elevator pitch
We’ve all met individuals at networking functions who stammer, "I’m a creative writer, but also do social media. And I love helping businesses with their financial books. And I sell audio files on the internet." When we hear someone with such a diverse range of interests and skills, it can be difficult to know what type of work to hire this consultant for, so we don’t end up hiring them at all.
On the other hand, if we meet someone with a very specific skill-set, such as, "I’m a fitness coach for pregnant women.", we may not need these services right away but we associate this consultant with a specific area of expertise. And when we have a need for such services, even years later, we will remember the specialist and seek her out.
3. Clear understanding of your market
When you own your niche you understand who your customers are. If you are an interior designer who specializes in the restaurant industry your customers are high-end restauranteurs. But if you are a general interior design consultant your customers are all homes and all businesses, which can be difficult to market to and stand out in.
4. Easier marketing – Direct to potential customers
When you own your niche and understand who your customers are, by default, you know where to market yourself. Advertising dollars are better spent and your message gets out to specific, potential customers more directly.
5. Your name is associated with your niche
You want people to associate you with a particular problem or situation. To use a basic analogy, if a man has gutter problems on his home he is more apt to flip to the yellow pages and contact "The Gutter Guy Co." rather than flip to the yellow pages and seek out a general handy man who may not be experienced with gutters–even if his price is lower. The same general rule applies to your consulting business. You want to be a specialist and you want to be known as "The Gutter Guy" or "The High-End Restaurant Interior Designer" or "The Fitness Coach for Pregnant Women."
6. Easier to stand out
When you own the niche it is easier to rise to the top–be it by word of mouth, in the yellow pages or in the search engine results.
7. Higher rates
Specialists earn more than generalists. It’s a fact! Customers are willing to pay for your expertise. Want to find out more about the elements that effect your rates and how much you can charge? Check out Consulting Fees: A Guide for Independent Consultants.
- Becoming an expert
- Discovering your niche
- Never underestimate niche markets
- Consulting Fees: A Guide for Independent Consultants
- Discover Your Inner Consultant
- Discover Your Inner Entrepreneur (for moms)