Three Ways to Identify Your Niche
What Kind Of A Company Are You?
One of the most dangerous terms in the industry is "General Contractor." The truth is, the real riches are made in niche markets, not generalities. These days, you will make more money faster when you know who you are, who your target market is, and how to communicate with them.
Maybe you already have a niche, but you have not done a good job articulating it. Or perhaps you need a niche, but don't know where to start. Here are three different approaches to finding your niche.
Where have you had the most success before?
Go through your customer list and find the top 10% of your customers. These are the loyal customers that also send you lots of referrals. You will see a pattern emerge. For example…
these clients have had you do similar types of projects
they live in similar neighborhoods
you see similarities in their income level and so on
Create a customer base on what you discover and begin targeting that niche specifically.
Where is the opportunity?
Niching means narrowing your focus, but you need to be careful. Narrowing it too much will lead to the end of your business and will become more of a hobby. So, look around the marketplace and figure out where the opportunity lies. Questions to think about:
Who actually wants what I have to offer?
What are they looking for?
Where can I find these leads and prospects?
Which segment of the market is growing rapidly right now?
Where do I have the most fun?
Finally, think about the kind of work that you love the most. What gets you excited and energized on the job? What types of jobs are the most rewarding? Focus on attracting those kinds of jobs. When you do what you are most passionate about, you will have more energy and enthusiasm. Nothing else will help you grow your company more and faster!
We see contractors give into fear and avoid having a niche ESPECIALLY during a recession, because they are afraid to turn down work. Don’t fall into this trap. You can never save your way to riches.
Our next article will continue on this topic, “How to Change Your Mindset Now and Come out on Top of the Next Recession.”
