Being all things to all people is impossible in personal lives and in your business life. I suggest relying on the old 80/20 rule. The message of the 80/20 rule is that it reminds you to focus on the 20 percent that matters. 80% of your potential target market probably won’t buy from you. Choosing a target or niche market is tough, but identifying the 20% who are most likely to become clients will give your firm a laser-like focus. Without that focus, you expose yourself to presenting a message that is full of fluff to 80% of your market.
Identifying Your Niche
Start identifying your niche with a narrow focus, but remain flexible to expand as new business is generated. Define a high degree of specialization in order to differentiate your practice. Avoid placing limitations on your firm and turning away business by defining your market too rigidly.
Choosing to specialize in a niche will allow you to:
- Use your time more effectively
- Provide better service to existing clients
- Differentiate your firm
Navigating Your Niche
By placing focus on the niches you have identified, your ability to hone in on select groups and provide specialized service will open the door to more referrals. Existing clients and your strategic alliances will be more inclined to refer new clients in your direction. Remind them of the ideal clients you are looking for. Providing specific descriptions, such as “retirees between the ages of 55 and 70”, will make it easier for others to identify connections they have in a specific group. When you simply ask for a referral without providing a descriptive landscape, it is hard for others to refer the ideal and compatible potential client. They may refer their next door neighbor who is in their mid 20’s, just starting a family…. It is your responsibility to steer your clients, alliances and COIs in the proper direction with a clear and concise description of the type of client you are looking for.
Get Your Niche To Notice You
Avoid aiming for an undecided percentage or portion of the already saturated broad market. This will place your firm with every other financial advisor in your area and provide no means of differentiation.
By identifying a market position or niche, you will be on the path of instilling operational effectiveness, success and a clear vision for you and your firm. Your service and product offerings will be aligned with your niche, thus providing a solution to client’s unique needs.
When you identify and market to a niche, your firm is:
More likely to have an impact – strong positions in a target market provide your business with identity.
Able to stand apart from competitors – your firm is positioned to connect and engage in meaningful solutions to specific needs.
Positioned to grow organically – by providing laser-focus service, your clients will be marketing your firm for you.
There are a plethora of niches you can choose from. Choose niches that you have a genuine passion for and reap the benefits of being viewed as an expert in your field. You need to work with clients you are comfortable with.
“Please all and you please none.” -Aesop, Greek Author
We are curious! Who are your niche markets? How is your firm benefiting from niche marketing?
Learn more about how Ironstone can impact the operational effectiveness of your firm! Read more at www.ironstonehq.com
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- Strategic Planning
- Business Development
- Operational Effectiveness
- The Human Element
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