Working in a niche market creates a focused and more enjoyable business for you.
When you deal with same type of client every day, you can systemize every aspect of your practice, such as client meetings, says April-Lynn Levitt, a coach with the Personal Coach in Calgary. The right niche will also make your job more pleasant, so you’ll probably do a better job.
But many advisors fall into the same mistakes when trying to establish a business that focuses on one type of client. When looking for the niche that will make your business successful, avoid these five common missteps:
1. Following a fad
Instead of going with the latest trend, search for a demographic group that fits your business.
Some advisors pursue a certain niche because of something they read, Levitt says, or someone told them it would be a good market.
Instead, she says, your target market should be a natural fit for you. For example, it might be related to something you are passionate about, such as a particular area of charitable work. Or it could be connected to a profession or group with which you have experience, for example, through a previous career.
2. Not knowing the issues
Make sure you understand your chosen target market.
“You need to know what problems, issues or challenges that particular niche is having,” says Kevin Toney, marketing coach with Primetime Promotions in Winnipeg.
Then, ask yourself: How can I position the products I sell to solve that problem or issue?
3. Thinking too broadly
Don’t be afraid to get really specific about the clients you want to work with.
“The more focused you are, the better,” Levitt says. “For example, you might pick a niche of doctors but a female [urban] physician is very different from a rural physician, who is different from a specialist, who is different then a family doctor.”
The more focused your niche, she says, the better job you can do.
4. Ignoring your market
“Make sure you select a target market you can communicate with on a regular basis,” Toney says.
Whether it’s attending trade events, hosting seminars or sending out a newsletter, he says, you must keep yourself “top of mind” with clients and prospects in your market throughout the year.
Make sure your planned initiatives, such seminars, as are financially feasible.
5. Giving up too easily
Building a niche market takes time. So, don’t give up if you don’t find a big roster of the “right” prospects after a month.
Advisors often don’t give themselves enough time to really establish a presence in their niche, Toney says: “They’re trying to get that ‘overnight success’ that we all know doesn’t usually happen.”
It can take up to seven different contacts, such as a seminar or a newsletter, over a period of months or even a year, he says, before you start seeing results.
This is the first instalment in a two-part series on building a niche practice. Next: overcoming common misconceptions about niche businesses.