Here is a question I want you to answer right now.  Ready, who are the specific group of people your business serves and what main solution does your business offer them?

How did you do?  Was your response immediate and clear?  If you’re struggling to answer these two questions don’t panic.  I’m going to give you the information you need to get started but first, why should you even bother having a niche.

Here’s why you need a niche.  You will attract clients faster with less effort.  You will position yourself as an expert.  You will make it easier for other people to give you referrals.  You will feel extremely confident.  Now who doesn’t want all of that?

There are two parts of your business you can niche. One is ‘your people’ the other is ‘their problem/your solution.’  Niching both parts is the most effective but niching one is better than none.

And the more specific your niche is, the more your business will be seen as the one and only solution for your clients.

First we’ll look at your people, then your solution, and finally how to put it all together.  You don’t have to start with your people.  You can start with defining your solution or you can work on both at the same time.   

So, who are your people?  They can be any combination of the attributes below (this is not an exhaustive list, just to get you started).  Grab a piece of paper and write down all of the descriptions that apply to your people.

YOUR PEOPLE

- Gender: Male, Female, or Both

- Age Group: Teenagers, Recent University Graduates, People in their 30’s, Mid-Lifers, Retirees

- Life Situation: Divorced, Married, Single, Retired, Recently Relocated, Dealing with Illness

- Location: City, State, Country Specific, Worldwide

- Affiliation: MBA graduate, Member of Professional Organization or Association, Church Member, Speaker of a Particular Language, Specific Nationality

- Interests/Hobbies: Travel, Animals, Running, Cooking, Drawing, Writing, Photography

- Educational Background: Undergraduate University Degree, Masters Degree, PhD

- Industry: Banking, Medical, IT, Oil & Gas, Professional Services, Consulting

- Position: CEO, Project Manager, HR Professional, Small Business Owner, Accountant

Here are a couple of examples:

* Female small business owners who work from home and have kids

* Retiring male bank executives who live in New York and love to travel

It is important that the niche of people you choose fit three critical criteria.

1. There are enough of them to sustain your business

2. You can easily locate and reach them

3. They are willing, and able, to invest in your products and services

OK, now you know who your people are.  So what does your business do for them?

THEIR PROBLEM, YOUR SOLUTION

Most problems are directly tied to some general wants/needs: to save money, make more money, save time, reduce stress, feel more healthy, attractive, and happy.  Here are some possible problems that your people may have. 

> Need more clients (want to make more money)

> No time or energy to exercise (want to feel better)

> Managing a team that is not getting along (want to save money & reduce stress)

> Not enough time to get everything done (want to make money & reduce stress)

> Stuck in a style rut and need a new look (want to feel more attractive)

> Can’t find the right romantic relationship (want to be happier)

> Don’t know where to invest their money (want to make more money)

Now put the two parts together, your people and the problem they have that your business solves. Here are two examples:

1. Female small business owners who work from home and have kids who don’t have enough time to get everything done.  You help them by offering your services of virtual assistance which are tailored for busy working moms.

2. Retiring male bank executives who live in New York and love to travel but can’t find the right romantic relationship.  You help them by offering them your matchmaking services that are designed just for them and the kind of partners they are looking for.

Are you starting to see why niching works?  Make the decision today to commit to creating a super defined niche for your business and experience the many benefits. 

© Stephanie Ward, 2008

WANT TO USE THIS ARTICLE IN YOUR NEWSLETTER OR WEB SITE? You can, as long as you include this information with it: Stephanie Ward is the Marketing Coach for Entrepreneurs who want to set their profits on fire!  Grab your FREE copy of the special report ’7 Steps to Attract More Clients in Less Time’ plus business building tips, at: http://www.fireflycoaching.com.

What do you know about your clients?  What kind of information can you identify about your clients without having to ask them?  Knowing more about your clients is a fabulous way to grow your business.  Keep reading to find out how.

Why is all of this important?  Here are four reasons:

1. If you know more about your clients (past and current), you will have a better idea about where and how to find more people like them.

2.  You may also discover a trend that you were unaware of previously.  Like the fact that most of your clients are mostly men, that they are all mothers of small children, or that many of them are from the same area.  When you know more about your clients, you can create products and services that match what they really want.

3.  When you know the most frequent ways that clients find your business, you can increase your marketing efforts in those areas.

4. When prospective clients ask you what kind of clients you serve, you will be able to answer clearly with confidence.

So what do you need to discover about your clients?  Here are some questions to ask yourself to get you started.  You may not be able to answer all of them.  See if you can come up with more you do know. 

BUSINESS TO CONSUMER

- Are they mainly men or women, or both?

- What age range are they?

- Where do they live?  The same city as you?  A nearby city?  Another country?

- How much do they buy from you on average?

- What is their nationality?

- Are they single, married, or divorced?

- Do they have children?

- What is their profession/business?

- What clubs do they belong to?

- What types of books and magazines do they like to read?

- Is there anything else they have in common? 

- How do they find out about your company?

BUSINESS TO BUSINESS

- What size is their company?

- How much do they buy from you?

- What is their geographic location?

- What type of industry are they in?

- How do they find out about your company?

- What is the function of your contact at the company?

OK, now you have the numbers, how do you use them to figure out the percentages that can help your business?  You don’t have to be a math whiz to do these calculations.  Depending on how many past and current clients you have, you can use paper and pen or an excel spreadsheet.

Start by writing down the number of clients for each category like: gender, age range, etc.  Then take the number in each category and divide it by the total number of clients and you have the percentage of that category.

The great news is that once you have set this up, you can simply add new clients to the mix as you go.

Take a good look at the information you find and sort it from the highest to lowest percentage in each category.  This will tell you which groups to focus on more and which groups need less attention.  It’s also a chance to re-evaluate who you would ideally like to serve with your business. 

Also, look for themes and see if any patterns emerge.  You may be surprised at what you find.  When you have better knowledge about your clients, you can make better decisions for your business. 

Curious to find out who your clients really are?  Set aside a few hours to analyze your clients and find out more about them as well as what you may have been missing.  Take the valuable information you find, create a plan, and put it into action.  Happy hunting!

(c) Stephanie Ward

WANT TO USE THIS ARTICLE IN YOUR NEWSLETTER OR WEB SITE? You can, as long as you include this information with it: Stephanie Ward is the Marketing Coach for Entrepreneurs who want to set their profits on fire!  Grab your FREE copy of the special report ’7 Steps to Attract More Clients in Less Time’ plus business building tips, at: http://www.fireflycoaching.com.