Aiming toward your most lucrative niche is a great way for you to increase sales. Many small business owners make the mistake of trying to appeal to everyone, and as a result, they end up appealing to no one. By narrowing your focus and targeting a specific group of consumers, you can create marketing materials that speak directly to their needs and desires. In this blog post, we will discuss the benefits of working with a more lucrative niche and provide some tips on how you can get started!
1. What is a niche
A niche is a specialized market where a business can focus its marketing and selling efforts. A more lucrative niche is one where the potential for profits is more significant.
I’ve seen that plenty of entrepreneurs start their business to serve a select niche, and usually, there’s an emotional attachment. From personal experience, they know full well that this is an underserved niche and therefore deserve all of their attention.
Attention means all of their marketing and selling efforts.
What’s rarely considered (because of the emotional pull) is whether or not this original niche can pay for what is offered. Questions such as these are shoved aside.
Can they afford this?
Do they value what I have to offer?
When businesses try to hang on, thinking, “They will come around” or, “I just need to be more visible,” they risk damaging their business. This leads to lower sales and a smaller customer base. However, expanding to serve a more lucrative niche allows a company to grow, hone in on what makes it unique, and stand out from the competition.
2. Benefits of working with a more lucrative niche
There are several benefits to working with a more lucrative niche.
First and foremost, it can increase sales as you will target customers with more money to invest when working with you. This is because a lucrative niche is a subset of the market with specific needs and is willing to pay more for products or services that meet those needs.
Additionally, by focusing on a specific group of people, you can become an expert in that area and stand out from the competition. This can lead to more word-of-mouth referrals and higher customer loyalty.
Finally, a lucrative niche can be more fun and rewarding to work with than a general market. You will have an opportunity to learn more about the needs and wants of your target customers, which can help you create better products and services.
I’ve had plenty of clients so emotionally connected to their original intent that they were offended when I mentioned aiming toward a more lucrative niche.
I always encourage that it’s not so much as “dumping” your original people. It’s more about expanding your circle. And, when you grow your circle, this affords you the ability serve your initial niche.
For example, a more lucrative niche readily invests in higher-priced services and products from you. You can reserve 10-20% of that profit and create subsidized programs to serve your original market. What was previously offered at $500 (a high price) can be adjusted to a $100 price point.
More reasons why small business owners resist aiming toward a more lucrative niche
Small business owners are afraid to expand beyond their comfort zone. They’re scared to target a more lucrative niche because they think it’s out of their reach. They believe that the only way to increase sales is by appealing to everyone, which is not the case.
They also believe, “Who am I to serve those people?” or “I don’t know enough about that group to sell to them.” This is not true. You don’t have to be an expert on a niche market to work with it. You can always learn more as you go.
Sometimes they think, “What I do isn’t that special.” But the truth is that no matter what you do, there will always be someone who needs it.
Small business owners may also believe that working with a more lucrative niche would increase their expenses, and they don’t have enough money to buy ads on Facebook or Google Ads. Just because you target a lucrative niche doesn’t mean you can’t increase your sales through free marketing tactics such as networking, SEO, or Content Marketing.
Now that you know the benefits of working with a more lucrative niche let’s discuss how you can get started.
3. How to find your lucrative niche
Identify what is unique about your product or service that solves this need in a way no one else can. This is called your business’s “unique selling point” (USP). If you can’t think of anything unique about what you have to offer, then it’s time for a rethink.
Once you have solidified your USP, it’s time to brainstorm. Brainstorm with an unbiased individual such as your small business financial coach. This person will likely take you out of your comfort zone and help you think of groups you won’t usually think of.
Brainstorming your lucrative niche is one of the steps in my sales framework. I have a unique ability to challenge my clients who believe:
“I can’t do that.”
“Those people don’t get me.”
“That’s too much money to charge.”
Finally, be sure to research pricing more deeply. You want to charge enough to make a profit, but not so much that people won’t buy. I love constructing different programs, packages, and pricing strategies, so please reach out if this is something you struggle with.
Remember, it’s essential to balance what you offer and how much people are willing to pay. Most importantly, however, you need to check your confidence every step.
4. Tips for finding your lucrative niche
There are plenty of ways to find your lucrative niche. One of my favorite ways is to get involved in their community. Attend their events, join relevant online forums and discussion groups, and connect with them on social media. Pitch yourself as a free speaker and volunteer for leadership positions when the opportunity arises. By being a part of their community, you’ll be able to learn more about what they want and how you can help meet their needs.
The first step to increasing sales by working with a more lucrative niche is becoming open to expansion. Don’t be afraid of going all in and focusing on the new crowd. This doesn’t mean you’re ditching your original intent! One of my mentors said, “Don’t throw the baby out with the bathwater.” Expansion is key. The benefits of doing so are plenty: You’ll have less competition and likely increase your revenue. A new customer base will feel like they’re getting personalized service from someone like them. Get started now! Reach out to me and apply for a complimentary consultation. Let’s talk to see if I can help you identify a lucrative niche for you. Use these tips to help guide finding your perfect niche market.
Janet Johnson is a small business advisor and author of My Money Pivot: An Entrepreneur’s Guide to Finding & Making More Money and this educational blog. All views expressed belong solely to Ms. Johnson and do not represent the views of her employer. The website, MyMoneyPivot.com, is currently managed by Luz Marcos, Virtual Assistant.