One of the most significant reasons that you should be niching down is that this will help you get clients more easily when starting out. Attaining clients is one of the toughest parts of earning an income online and so any way that you can make this easier the better.
So what do I mean when I say that niching down helps with client acquisition? When you focus on one industry, you can very quickly get to a position where you know intricate details that enable you to become a thought leader in that space. If you don’t niche down then you simply cannot do this. You’ll be a jack of all trades accepting any client from any industry. The fact is, if you are a specialist in a certain industry, clients are going to prefer to go with you.
If you want to expand out to new industries, do this at a later time. Start off on a very deliberate path and clients will come.
So how exactly do you decide what niche to go for?
Here’s what you must look out for. You want to find a niche that is both profitable and is interesting to you. You can imagine a Venn diagram with both intersecting.
The profitable factor is self explanatory. Does this niche work for the service you offer? If you are offering Social Media Ads then is niching on bouncy castle companies going to work? Perhaps.
The next thing to hone in on is whether or not the niche interests you. A huge part of your client acquisition is going to be knowing the industry inside out. Not only that but once you actually get those clients, you’ll be spending a lot of your time working on serving clients in that industry. If you don’t enjoy it or find it interesting then you will struggle to stay in the game long term.
A thought experiment to help you figure out your niche
Here’s something you can do to help nail down your niche. Get a note pad and a pen. Write down in one column a list of industries and topics that interest you. Keep writing until you have 50 items in your list.
Now go back down the list and tick off any of these interests that you feel can potentially be profitable.
Finally, go do some research to see what the market is like and drill down your list into the niche you feel drawn to the most!