How to grow your business now
Sometimes turning down work can pay off
Expert Rhonda Abrams explains how finding a niche, narrowing your focus can pay off.
All over America this week people are observing “Small Business Week.” They’ll toast the huge contributions small businesses and entrepreneurs make to the American economy.
But when USA TODAY turned to me to create a special, five-day, series for Small Business Week — kicking off today — I wanted to do something more than just celebrate small businesses. I wanted to help you grow YOUR business — right now. That’s why I’ve chosen the theme “Make This Your Year to Grow.”
Today, I’m focusing on one of the most effective growth strategies for small companies — finding a niche, concentrating on a clearly defined market or other specialty. Ironically, by narrowing your customer base, you can attract more customers.
Megan Driscoll certainly knows how specializing contributes to her company’s growth. When Driscoll launched her public relations agency in September, she could have provided services to any type of company. Instead, she focused exclusively on two industries she knew well: aesthetics and dermatology. That decision led to the Ferrari-like speed with which her new agency, EvolveMKD in New York, grew.
“It’s been crazy,” said Driscoll. “I opened my doors with three clients; now we have seven. I opened my door with zero employees, now we have nine.”
Choosing to focus on a niche gives small businesses many advantages. It:
Sets you apart from competitors.
Focuses your marketing efforts.
Gives you credibility.
Helps attract higher-quality employees.
Enables you to charge higher prices.
Focusing on a niche makes it easier and less expensive to reach potential customers. If you specialize in an industry, you can join industry associations, exhibit at trade shows, get active in its LinkedIn groups. Serving specific demographic groups allows you to advertise through highly targeted Facebook posts or websites.
“When you’re a generalist, you think you need to be everywhere,” Driscoll said. “When you’re targeted, you’re better able to figure out how to market, where to speak, which writing op- portunities to take. It’s much better use of your time, and you have more success.”
What kinds of specialties can you choose? Start with assets and interests you already have. Driscoll had deep knowledge of, and contacts in, the health care and beauty industries. For her, it was a no-brainer.
NICHES THAT LEAD TO RICHES
Demographics. Serving a specific demographic group gives you an immediately recognizable way to attract customers, especially in consumer businesses such as hair salons for children or tours for seniors.
Geographic. In certain businesses, homing in on one area or location differentiates you from competitors. Think Realtors who focus on a specific neighbor- hood.
Knowledge or expertise. Emphasizing areas in which you have in-depth expertise gives you a strong competitive edge. My friend Kenneth Allen was an arborist specializing in palm trees.
Clearly differentiated style. Specializing in a style of product or service gives you the edge; for example, you might operate an organic nail salon, vegan restaurant or a made-in-America furniture company.
Does selecting a niche mean turning down other work that comes your way? Not necessarily. It does mean concentrating your marketing — including sections of your website — on your specialty.
If you’re serious about growth, stay highly focused, and strategically deflect other prospects.
“It was hard,” said Driscoll. “As a new business, it’s counter-intuitive to turn business away. But I referred them (potential clients) to other agencies, who’ve already referred business back to me.”
Choosing to focus in on a niche and narrow your marketing can be scary — you naturally feel like you want every customer you can attract.
“Since I’ve started my business, I’ve met many other small-business owners,” said Driscoll. “It seems like the ones who don’t specialize are driven by fear. They’re afraid they’re cutting off potential business — but no, you’re not. By specializing, you’re better able to achieve business that’s more stable. I’ve been able to gain clients who are going to be long-term partners.”