If you run a business, you know how complex it can be and how tempting it is to say yes to every potential customer. You’ll say yes, even if that means customizing how you do things just for them. After all, they represent more revenue. You would be crazy to turn them away. So, the idea of focusing on a specific ideal customer with a tailored product or service sounds insane. But it’s not insane. Give me a few minutes to tell you why you should pick a niche for your small business.
The Problem with a Broad Customer Profile
When you have a broad customer profile, you think the opportunity for sales is bigger. Unfortunately, it doesn’t work out that way for most small businesses. Here’s what happens when you don’t pick a niche.
- You struggle to define a central customer problem that you can solve.
- Your marketing message gets confused and messy.
- Potential customers struggle to see how your business can address their unique needs.
- Every new customer forces you to create a unique service for them.
- You find yourself unable to scale your business.
- Sales decline.
It all comes down to focus. When you don’t pick a niche to serve, you can’t get focused. You bounce from one type of customer to the next and become more frustrated because you have no time to rest and are not making money.
The Benefits of Picking a Niche Customer Profile
One of the biggest benefits of picking a niche customer profile is peace of mind and clarity. Imagine waking up every morning knowing who your ideal customer is, what problem they are dealing with, and what you can offer them as a solution. Now you have focus. What you don’t have is
- Wasted time trying to shoehorn your service into the needs of every “prospect” that steps in front of you
- Diluted services that eventually underwhelm and disappoint all your clients
- Sleepless nights and not vacations trying to keep it all running
When you pick a niche for your small business, your marketing message because sharp and laser focused. Figuring out where to hunt for new clients gets a lot easier, and so does recognizing someone who would make an ideal client. On top of all that, you can now build a business that can scale up, make money, and give you the freedoms you were hoping for in the first place.