Your Profitable Niche
All niches are not created equal. So how do you choose the best niche? Consider whether the work you highly enjoy doing serves that specific population. Plus, it needs to make you money. Otherwise, you’re developing a hobby rather than a business.
Research these questions. Look for evidence that your niche market values what you offer. Either there will be similar businesses that already exist in that market. Or, you’ll fulfill an unmet need for that population.
Like all things, you’ll get better results when you’re specific. Some industries have a proven track record. These are the five most profitable categories.
- Health & Fitness
- Wealth / Money
- Relationships & Dating
- Self Improvement
- Hobbies, Interests & Activities
Yes, it’s a pretty broad range. Does your business serve one of these areas? If not, don’t worry. Plenty of highly successful businesses exist outside of these categories.
6 Critical Factors to Choose a Profitable Niche
I’ve put together a list of six factors when considering a niche market. Keep your ideal client in mind as you review this list.
1. Your Ideal Client Spends Money to Solve This Problem
Think about the service you offer and the problem you solve. Does your ideal client realize they have the specific problem you solve? If so, do they already spend money trying to fix it? Or did you become aware a gap and you’ve developed a solution.
- Problem. Your ideal client struggles with a specific problem.
- Awareness. Do they realize it?
- Research. They’re looking for solutions.
- Action. They’re ready to invest in a solution.
- Position. Your service resolves that problem.
I want you to work with clients who value what you offer. Therefore, don’t charge by the hour, the session or the project. That overlooks your expertise. Value based pricing is your best option.
2. Passion and Purpose Fuels You Forward
Sometimes you immediately know your purpose. For others, it’s revealed over time.Discover the purpose behind your work. Without meaning, your work becomes a grind and you eventually burn out. #getpaidwhatyoureworth Click To Tweet
Either way, a strong purpose keeps you focused through the ups and downs. Discover the purpose behind your work. Without meaning, your work becomes a grind and you eventually burn out.
Your enthusiasm for your work is very client attractive. Your clients love the fact that you deeply care about them. They realize that you’re fully committed to their success.
3. You Can Develop Referral Relationships
Imagine a network of people eagerly talking about your business to potential clients. They’re making connections on your behalf. It’s a fantastic business growth strategy.
Expect 50 to 70% of warm referrals to turn into clients. A warm referral is an introduction to someone who’s interested in speaking with you. Someone else made the connection on your behalf.
Many entrepreneurs mistakenly let this occur haphazardly. But what if you create a plan that nurtures referral partnerships? You’d enjoy better results.
Susan, a bookkeeper, and Gary, a tax preparer are both in my mastermind group. Susan discussed her expansion plans. Gary mentioned that several of his clients are to hire a bookkeeper. They briefly discussed the best way to make that introduction.
Gary’s introductions will help Susan’s practice grow. Furthermore, a great referral makes Gary the hero in his client’s eyes.
4. A Replicable Business Model Exists for Your Niche
Are you an entrepreneur and a creative? If so, then you’re prone to lots of ideas and some unfinished projects.
You don’t need to reinvent the wheel. Rather, find a business model that already exists and meets your needs. Then blend in your framework, or technique, so it has your unique touch.
Don’t be afraid to look for business models outside of your industry. I’ve often discovered that other professions can offer clues. How would you structure your ideal business?
5. Rely on Your Experience, Pursue Further Learning
Your experience, even if it’s outside of your current profession, does matter. Highlight your experience, skills, and expertise. Everything you know influences your work.
Figure out how your experience and your skill set benefits your niche market. Competing for market share gets old after awhile. This one strategy separates you from the competition.You are the best investment that you can make in your business. #getpaidwhatyoureworth Click To Tweet
You are the best investment that you can make in your business. Experts consistently expand their knowledge with education and training. It’s an evolution; not a destination.
If you are the industry expert for your niche market, then people will want to learn from you. Does that interest you? If so, then trainings, certification programs and professional licenses are various ways you can teach others your method.
6. Competition is a Strong Success Indicator
Competition is a good thing. It’s evidence that your niche market already exists and will invest in your service.
Maybe you offer a service that doesn’t neatly fit a current niche. You’re forging a new path. Then you’ll need a strong marketing campaign to educate people about who you serve and how you help.
Regardless of which path you choose, traditional or novel, highlight your skills and your abilities.
Develop Your Unique Approach
A profitable niche makes things easier. Search for role models. Then adapt their structure to fit your needs. The key is to borrow the strategy, not to copy.
Your unique approach based on your personality, style, and the skills you bring to the marketplace is what separates you from the competition.
Find the best way to highlight your service.
- Clearly communicate your ability to address and solve client problems.
- Design an easy way for potential clients to connect with you.
- Ask for their business.
- Include a call to action on website pages.
- Find an authentic and genuine way to extend an invitation in your emails or phone conversations.
Market Your New Niche Focus
Find ways to let others know about your business. In the beginning, spend time on marketing activities that directly result in calendar appointments and paying clients. This starts to build your client base and gets you paid.
Choosing a profitable niche takes research, thought, planning, and direct action. If you are struggling with how to choose the right niche for your business, I can help. I’ll lead you through a clarification process. Schedule a complimentary, no-obligation private strategy session now.