How not niching down could KILL your freelancing business
It's no secret that the freelance world is a competitive one. In fact, studies show that 70 million Americans are now freelancing. That's a staggering 36% of the US workforce! And that number will only continue to grow.
In such a competitive freelancing market, standing out from the crowd is more important than ever. In fact, not niching down could ultimately kill your business.
Niching down means specializing in a specific area or industry. For example, instead of being a general graphic designer, you could specialize in designing logos specifically for women’s boutique owners.
While freelancing can be an incredible way to make money and have more freedom in your work, it's also true that many freelancers fail.
But why do so many fail? One reason is that they try to be everything to everyone. They get started as a general virtual assistant and remain there without ever transitioning into one specialized area.
The common misconception is that by niching down, you’ll be less successful because there will be fewer people who need what you have to offer. While this might seem to be the case, it’s actually the opposite!
Marketing yourself as the “jill of all trades” makes it harder to stand out in a crowded marketplace, and therefore, harder to get clients. That’s why niching down is so key.
Niching down is going to do three key things for your business:
It’s going to help you become an expert in your field.
By honing your skills and knowledge in one specific area, you will have a much clearer understanding of your customer’s challenges and pain points.
Because of this, you’re more likely to be hired over someone who has a little experience in a lot of different categories. You’ll be able to position yourself as the solution to their problem and offer specialized services that meet their specific needs. The result? You’ll establish credibility and be seen as an expert.
It’s going to give you an income boost
By hiring a specialist, clients feel more confident in their decision and are willing to pay a premium price for the peace of mind that comes with knowing they are working with an expert.
Instead of being on standby to help with whatever tasks come up in your clients’ business, you solve a specific problem that not just anyone can do. The result? You’ll be able to charge higher rates than your generalist counterparts because you have in-depth knowledge of the specific service you specialize in.
It’s going to help you attract more of the right clients
You’ll find that after you niche down, getting clients for your business will feel so much easier because you’re not trying to connect with anyone and everyone under the sun who is a business owner. You’ll instead have the ability to target your marketing to clients who need the services you have to offer. The result? You’ll begin attracting ideal clients and really begin to love freelancing!
Now, it might seem scary to turn down work or to limit yourself to one specific area, but trust me, it's worth it in the long run. Not only will you have the ability to earn more, but you'll also be happier because you're going to be doing work that you enjoy and know how to do well.
Studies show that businesses with a niche focus are 60-70% more likely to succeed than those without. That's a huge difference!
So if you're a general freelancer who's struggling, or if you're just starting out and want to set yourself up for success, my advice to you is this: don't be afraid to niche down.
Take some time to think about what you're really good at, what you're passionate about, and what industries you're interested in. Then, start focusing your marketing efforts on those areas. You'll be amazed at how quickly your business can grow when you're known as the go-to expert in your niche.
