Small is beautiful: Why having a niche is so important for successJul 12, 2020
by TONY BYRNE Managing Director, Wealth & Tax Management
I RECENTLY joined a business course run by a business coach who specialises in advising smaller Independent Financial Adviser firms how to grow to the next level to achieve their business potential.
This coach has a very specific niche. He isn’t interested in one-man band businesses nor is he interested in large businesses. His specific niche is in smaller IFA firms that typically have offices and employ maybe 5-10 people and which want to grow.
He interviews every prospect and rejects any firms which do not meet his checklist of qualifying criteria. His criteria are not just financial either. He wants to ensure that the IFA firm’s owners are personable, positive and ambitious.
He also wants to find out if there is genuine potential to grow their businesses.
I attended his first all-day quarterly workshop a week ago which was, of course, held online via a Zoom video conference meeting. Guess what is the first question on our business plan? ‘What is your niche?’
It got me thinking. I’ve known for a long time that a small business should have a niche and I thought we had a few niches but I was wrong. Why? Because our niches aren’t specific enough. Our website shows that we advise business owners, professionals, pre-retired/retired, divorcees and the next generation. So what is wrong with that?
Well, first of all, it is better to have one niche or maybe a few and to be more specific about them. After some hard thinking Cholpon, my fellow director, and I decided that she should specialise in wealthy females who are separated or divorcing/divorced and I should specialise in owners of technology/technology-led SME businesses.
After some deliberation, I originally came up with an even narrower niche of owners of software companies but I decided it was too narrow at this stage.
So my question to you is what is your niche and should you hone it down more? If you do I am sure you will experience far greater business success in the future. I am certain we will.
For advice on how to grow your business in a tax-efficient manner post coronavirus, join us for a one-hour Discovery Meeting either at our offices – if lockdown is relaxed by then – or by video conference call at our expense worth £470 to each of the first five readers who contact us before August 31 2020. You know it makes sense. We offer a great cup of coffee too. Ring us on 01908 523740 or for free on 0800 980 4516 or email firstname.lastname@example.org.
Tony Byrne is a Chartered and Certified Financial Planner, a Chartered Wealth Manager and author of Wealth Magic.