When starting a new business, it’s too tempting to take every single client that comes your way. While this may seem like a great strategy, it’s counterproductive to long-term success.
Think Amazon for a moment. They are a leader in practically every business category you can think of. But, that’s not how they started 20 years ago. They focused on one thing – Books.
When they conquered books, they used their “lessons learned” to expand into other categories, and continued doing so.
A new business who serves all, is a small fish in the ocean. But when you niche down and begin serving a specific type of customer, get well known for your work in that one particular industry, now all of a sudden you become a big fish in a small pond. As you outgrow the pond size, move to a bigger pond, where you can continue dominating.
Rinse and repeat to grow as large as you wish.
So, how do you niche down?
Pick an industry you want to serve. Say the Legal industry for example. You’re going to serve Lawyers.
Now, drill down to what type of lawyers? Let’s say … Lawyers who practice family law.
If you want, you can drill down further by specifying a certain location … Lawyers who practice Family Law in Los Angeles, CA.
The further you drill down, smaller your pond, and larger you become as a fish. However, be careful not to drill down so much, that your potential pool of prospects becomes extremely tiny.