Just about every adviser tells us that we need to find a niche for our business, but nobody tells us specifically why. It is just said to be good for business – well, how good is it?
Here are some details for you to think about. If you agree then maybe it would be worthwhile investing some effort into leveraging the information in this article. More on that later.
Perry Marshall wrote a book about 80/20 marketing. Essentially he applies the 80/20 rule to business, and determines that 80% of the income comes from 20% of the market. You probably have figured that out, so here’s why that should be of interest to you.
Obviously if you focus on clients/customers in that 20% then you can serve twice the current number if you are not spending time on the 80% who are not so interested (especially the bottom 20%). That would give you 80% X 2 of your current income, and you still get to keep the extra from the middle group. If you want to.
Perry says that there is more to it than just that. The same fully connected 20% of the market will also buy additional products and services from you at higher profit margins. Not only will they buy your standard product, they will buy your premium product, plus a couple of your specialist products: your offer for widget makers, singles, couples, under 30, over 30 and so on.
Some of you are thinking that 20% isn’t really a niche. You’re right of course, and Perry thought of that too. He applied the 80/20 rule to the result of the first 80/20. Meaning that you receive 64% of the income from 4% of the market. Think about that, and what it could mean for your business and your lifestyle.
Assuming you can identify who they are and connect with them: you can expand your business reach to increase the number of those in the 4% and increase your income and at the same time increase your non-work time. You can use that time to better serve your current targeted market, expand into other businesses, take your family on more holidays, spend more time at the beach, or any combination of those plus anything else that you would like to do when you don’t have to work 40 plus hours a week.
Perry takes it one step further: you can generate 51% of your current income from 0.8% of your market. To do that you need to really zoom in on your target market, what makes them tick, what keeps them awake at night, and how you can solve that problem for them, and offer them targeted solutions to their problems.
That would be worth it though, don’t you think?
This isn’t some blue sky dreaming, this is pragmatic and achievable – if you take the required action. And you’ve heard these actions before: identify your market and their problem, how your solution works better than your competitors’ does, and what you need to say to educate your market about the benefits of dealing with you.
All of the experts who give you that information have done exactly that: identified that you are part of their 4%, they tell you about how much difference to your life their offer will make, and they charge you a premium price.
Well now you can achieve all you want without paying them a premium price. You just need to take action that supports your real desire (Which also implies that if you don’t take action then you didn’t really want it). Specifically: who are your target market? Not via some generalisation, but in specific terms: age, income bracket, marital status, location, number of kids, what problem they have that you can solve, why that’s a problem for them, how well you understand that problem, what makes your solution better then everyone else’s, what you need to tell them in order to convince them you are the person to do business with, when and where to place that message, and what simple action you are asking them to take to resolve their own problem.
There is one more factor: you need to know exactly what the market really thinks. That may not be the same as what you think. You might know that you are as modern as tomorrow, but unless your promotional activities mention that from time to time and your actions support that claim then your market may not be aware.
Hopefully you can see that I understand your problem, and that by explaining the detail behind the broad information that the others give you, and that by pointing out the simple steps you can take, you can see that I know what I’m talking about. So how do add value to you that you can’t get elsewhere?
The Brand Perception Indicator assessment is a questionnaire that takes about 20 minutes of your time. As soon as you complete it you can download a report that tells you what your market really thinks about your business, and that information will help you solve your market’s problem better. Meaning if you can identify where they are currently mistaken you know what to change in your current actions and communications to address that. And that leads to a far more profitable business for you – if you take the actions described earlier. If you want guidance about exactly what you need to do to connect better with your market then visit bpireport.com/order and get your road map to a better business. You could be heading down that road 30 minutes from now.