You hear it all the time, you have to find your audience, you have to find your niche! But what are the real benefits?
We had an amazing chat with Aaron Ross who explained exactly why finding your niche is the number one most important thing to do in business, and how it can 16x your revenue!
As a successful author and founder of Predictable Revenue, Aaron certainly knows a thing or two about building a growing a successful business.
Let's hear how he did it…
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Why is it so important to pick a niche for your business?
- Well, I’ve learned through my personal experience that the importance of being specific and targeted with your niche is essential for being able to build a business and grow it.
- The reason a lot of people (including myself in the past) resist that, is to do with different kinds of fears, the fear of missing out, fear of being bored etc.
- But when we can embrace the specificity of picking a niche you realise that it isn’t about your niche being small, it’s about it being focused.
- The resistance to picking a niche is the number one reason that companies struggle to grow.
How niche is too niche?
- If you’re a small business, under a few million dollars in revenue, any kind of analysis of market opportunity is just a waste of time in my opinion.
- That’s because if you’re at the point where you’re making even hundreds of thousands of dollars, there’s always going to be room to grow.
- There’s a market for everything today with the internet, no matter how niche. So, you don’t need to know the market opportunity at that point.
- If you fall into the small business bracket, I don’t think you can be too narrow with your niche, there will always be enough there to grow.
How do you know when you’ve found the perfect niche?
- I think typically that will show up when the business starts to run more smoothly.
- You’ll be able to generate leads more easily, you’ll see better effectiveness with your marketing efforts, and you’ll be able to repeat easily.
- When you’ve nailed your niche and you know what your target wants, you’ll see your lead generation start to work better.
- Also, people will start to understand what you do better and faster. Rather than having to explain what you do a few different ways; it will become self-evident.
How does finding your niche affect your offer?
- When I first started focusing on my niche in 2011 and I started doing more focused projects, the first project I quoted was about $7,500.
- Then I decided to test things out and so that figure moved up to $15,000 – $30,000 pretty quickly.
- I extended the project lengths to suit the niche and ended up doing projects of $120,000 that were more work, but better for business.
- It’s really hard to build a business on small deals. If you can do fewer bigger and better deals, it’s usually easier for you and your customers.
- It really goes back to figuring out what people want, what they need, and what are they willing to pay for?
- So, when you get really targeted on your niche, you can start delivering every detail of a solution and adding more value which allows you to extend your offer.
Is it better to offer ‘done for you services’ to move into that higher price bracket?
- It’s like an onion, there are layers to it!
- It’s about finding out where you feel confident being able to deliver what you want to do and finding out what works for you and what they need from you.
- Some people want you to do it for them and other people want you to tell them how to do it themselves.
- It goes back to really knowing your customers and knowing what they want and then thinking about how you can deliver what they want and need.
- For example, if you sell a 12 months course you could tell people that they will receive 12 monthly calls. Or, you could say that they get a team of 3 prospectors that will generate multiple opportunities each month. The second option is more important to your customer and that’s the thing they’ll pay for.
A book that you would recommend…
Wooden by John Wooden
What is your top success habit?
Publicly committing to things whether I think I’m ready to do it or not.
Who do you look up to?
Honestly, I tend to just follow people who have crazy talented skills.
Here’s the big one… who do you like more, Rob or Kennedy?
I’m gotta go with Kennedy! Red-haired Rob sounds like a pirate!
Finally, where can folks go to find out more about you?
The best place to find the book is FromImpossible.com or if you want to find out more about me you can head to PredictableRevenue.com or find me on social media!