Defining Your Niche: Think Small for Big Results

So you started a business (congratulations!), and on your big launch date, your enthusiasm is off the charts. You just know that everyone and their mom will be clamoring to buy what you have to offer. In fact, just so you don't leave anyone out, you offer a wide variety of generic products and services.

You have an interest in learning graphic design, and you know it's an in-demand service offering, so you add it to your menu. You'll just pick up the skills along the way.

You took a photography class in college, so you throw in those services too.

Oh, and you once worked (briefly) for a marketing communications firm, so you call yourself a marketing consultant.

Flash forward five months: Your sales are lackluster at best, your funds are running out, and you're about ready to throw in the towel.

What went wrong?

Simple: you tried to be everything to everyone. By trying to solve all your customers' problems, you became a master at nothing. It's much better to solve one problem really well than to be mediocre at solving 50 problems.

Based on the common misconception that narrowing your product or service offering limits your growth potential, you decided that the more products or services you offer, the better your chance of landing customers. Logical thinking, right?

In this case, not so much. Most businesses suck when they try to do too many things. Cut down the number of things you do and your margins shoot through the roof. Every small business that I've consulted has told me that once they narrowed their focus to a specific niche, their sales skyrocketed.

In fact, when my own construction company decided to stop actively looking for commercial work, our residential sales skyrocketed. Once we focused on the few things we did better than anyone else, everything got better -- more clients, more money and, most importantly, less stress.

Just think about it: Do you really want to be a small fish in a ginormous pond? Didn't think so. It's far smarter to be the huge fish in the tiny pond. Less is more.

Mark Vadon, Blue Nile's co-founder, was quoted in a recent BusinessWeek article as saying, "I want to be the best in the world at one thing. I don't want to be half-assed at a lot of things."

Now the million-dollar question is: How do you define your niche? To start, determine one thing that you do better than anyone else. Not sure? Ask people who know you well. I bet they can come up with at least one thing that makes you a rock star. If you need more help, Geekpreneur has some tips on ways to find your niche, and I recently included a few more tips here: the importance of being the best at what you do.

By narrowing your focus, you'll start to be seen as the expert in your industry. Which instills confidence in your customers and brings even more people to your door. Doesn't get much better than that.

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Still don't know how to define your niche? Contact Paul Singh, a business consultant who helps entrepreneurs and small business owners define their niche and grow their businesses. To learn more, head to his website at www.resultsjunkies.com. Interested in free tips on small business success? Check out Paul's blog at www.resultsjunkies.com/blog.