I’m going to put a stake in the ground and say every professional consultancy should niche down, narrowing their target market space.
Now, I can hear some of you saying, “If I specialise, I’ll lose clients. It’ll be harder to find enough of them.”
The opposite is true.
While you could be the jack of all trades, narrowing down your niche allows you to build serious expertise, credibility and authority in this space. High value clients will seek you out and want to engage.
Every client who’s done this has found this to be true.
These are a few from our files.
A financial planner who’s specialised in Aged Care. It’s a complex topic which entails navigating Centrelink, retirement homes, aged care, and estate planning. The financial implications of getting it wrong are huge.
Another financial planner specialises in very high net worth families and business owners. Their speciality is structuring affairs to afford maximum protection given the complex financial web.
Another one works with clients to dismantle self managed super funds and his speciality is choosing the right fund manager(s) to maximise returns.
A building firm who specialises in hospital operating theatre refits while operations are going on literally next door. They have now expanded into the education space.
A manufacturing consultant who helps furniture manufacturers turning over between $1M and $20M achieve higher profitability.
A leadership coach who only works with Principals and senior leadership in high schools to improve student learning outcomes.
An accountant who specialises in property tax. Specialising means he attracts people with complex tax affairs which need to be structured to minimise tax.
So why does this work so well?
Ask yourself how you’d choose someone to help you. Assuming you know what your specific issue is, you’d want a specialist.
You wouldn’t want a criminal barrister to work on your property issue with the land and environment court.
Nor would you want a commercial architect specialising in high-rise, to build your $20M dream home overlooking the water.
Second, from a purely commercial viewpoint:
We teach our clients two fundamental concepts. Denoted as points of a triangle, they are:
- Market – Message – Media match
- Traffic – Conversion – Economics
By picking a narrow segment of the market, you tailor your message to attract only the prospects you want.
Your message has to convey:
- You have a solution.
- You’re the right choice.
Your media – how you get your message in front of your ideal prospects:
- You only spend advertising dollars in media channels that your prospects engage with.
Which leads to the Traffic – Conversion – Economics triangle.
- How much you pay for traffic – getting your message in front of your ideal prospects.
- How many of these prospects become clients – your conversion rate.
- What your profitability is per lead source.
To sum up, a narrow market which is an inch wide and a mile deep (known as a vertical) allows you to get the best combination of right message to the right market at the right price which leads to increased profits.
Want help refining your niche? We’re offering complimentary 20 minute sessions where we’ll go over your market and give you direction. Call Rashid on 0414 913 334 to book in.