Finding Your Niche
There are 2 ways to provide a good value to clients, one vertical and one horizontal and then there is the one that is focused like a laser beam.
The worst scenario would be to try and provide a vertical and horizontal service, ie everything to everyone. You are sure to struggle to sell your services and also struggle to make a decent profit unless you have lots of cash and lots of time.
Here you provide a specific service to a big range of clients. The investment required is reasonable because you are providing very limited services.
Example: Oilchangers, Accountants, SEO, Flower shop, Vet Services, Recruitment Agency…
Here you provide a wide range of services to a specific client. The investment required is big, as you have to carry a lot of inventory and support a lot of services and expertise.
Examples: Wrightsons, PGG – everything for farmers, Southern Hospitality – everything for the hospitality industry.
Combination of both above. Here you provide everything for everybody. The investment required here is vast. Don’t even think about it.
Examples: Warehouse, Farmers…
The Ultimate Niche – The Sweet Spot
Here you provide a specific service to a specific client. Here you require the lowest investment because you provide only one product for a very targeted market.
For start-ups this is by far the best option. You can get started quickly and will be seen as the expert in the field without much effort. Your marketing will be very targeted. Growth and profitability will be excellent if the choice has been made wisely. It is easier to market and sell. It is easier to build and maintain.
Example: Acclipse – websites for accountants, Lawncare Marketing Experts, GoRoster – rostering software for restaurants, Recruiting agency for doctors, vet services for racehorses