What is Your Niche?
If your company is not targeting a specific niche and isolating the correct target market, you may be spending more money than is necessary to reach your goals. Advertising costs, additional personnel, and double work can all be extremely costly. Which is why it’s so important to focus your company’s efforts. The Exit Mindset is predicated on the idea that viewing your business as if there was a buyer present, will increase your valuation. Is a potential buyer able to see your business as a successful company that is correctly aligned, or is there a potentially valuable target market that is being neglected? If a higher valuation is what you’ve been working towards, this article is aimed at showing you how maximizing the profits of your business can lead to a better life for yourself as a business owner.
Focusing on a Niche Segment of the Market
As you speak with more and more business owners and CEO’s, you may begin to realize that targeting a niche market is one aspect of a business that is commonly overlooked. It’s easy to think that your product or service is for everyone. But is it realistic to market any product to hundreds of millions of consumers across various platforms? The answer is, not typically! If you are too close to the situation, it may be worth taking a brief step back and consulting some outside professionals for a second opinion. Clarification of your target market will not only eliminate exorbitant advertising costs but can also bring your entire team together to accomplish a single, known goal.
It’s no secret that there is a lot of power in targeting a specific niche! If you’ve had the chance to speak with a business owner who has recently clarified their target market and directed their marketing efforts towards a specific niche, you may have already found out that their life has naturally been simplified and become noticeably easier. Creating a better businesses model from the ground up, using the Exit Mindset and determining which people need your service, can help you focus on specific markets and demographics that may result in a higher conversion rate. A great example of how this tactic can yield success is an accounting firm that only caters to small businesses. While other accountants and firms are spending their time dealing with individuals and large corporations, by focusing on small businesses you may be able to carve yourself out a significant niche and piece of the financial pie. By understanding your customer’s needs, it is possible to help them efficiently achieve the results that they are looking for and, in the process, create a lifetime customer.
Narrowing Your Competition
At the end of the day, the more general your product is the more competition there is, and the more expensive your advertising becomes. If you’ve ever advertised using a service like Google or Facebook, you may know that the more general the terms you are focused on, the more expensive the advertising becomes on a cost-per-click basis. By narrowing your focus and eliminating competition, your company is able to thrive amongst a specific group of consumers. Clearly the objective here is never to isolate a large segment of the market. Once you have some sales and marketing data available to be analyzed, it may be a bit easier to dig deeper into your specific niche. Which will develop your product further to serve the consumers who are actually purchasing it! In this case, your business and the consumer are both benefiting from the product innovation and your marketing efforts.
Is your company not achieving their profit goals? For a lot of business owners, targeting the correct consumer is the primary issue! If you are a pet store owner who is focusing on all dog owners, you are setting yourself up to compete against all of the pet service companies across the country. By focusing specifically on Labradors, Poodles, or Schnauzers you may find that you are able to find success catering to a specific niche of the market. Throughout this article we’ve discussed how targeting a specific niche can decrease your advertising costs and create a better life for you as a business owner. After speaking with hundreds of business owners, it’s amazing to hear just how many have found unbelievable success by simply focusing on a single niche.
Are you interested in learning more about the Exit Mindset or how you can maximize your company’s profits? Visit our website www.exitmindset.com to learn more! On our website you can find podcasts, additional articles, and even worksheets that will help you move your business forward in order to prepare for the day that a potential buyer is standing on your doorstep.