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Ed Abel Presentation at S.H.I.F.T. NJ - March 4, 2010

 
Defining your Target Market (Niche)

Another great question from a fan... "How imperative is it for Skillpreneurs to define a niche market? How narrow must it be? What is the benefit and potential pitfalls to having a niche defined, and perhaps even too narrowly defined? Your thougths?"

Answer: Defining a niche is extremely important for a SkillPreneur. At the early stages of business, one may be tempted to take on any kind of job, client, or customer that comes along, and who's to blame them... it takes revenue to keep a business moving.

Here's the thing... at the early stage of a business, you are creating an identity for your business. If you want to become really well known in your market, you need to focus on one (somewhat) narrowly defined niche. Get really good at providing for that niche and get really well known for providing that niche. Sooner or later, you will become the "go to" company/person for that niche.

It's OK to take on a customer that are outside of your niche (since cash flow is good), it's just not a good idea to start marketing that service to the public since it will cause confusion. Equally, you need to be careful that the customer who is outside of your niche doesn't take too much of your attention, causing you to loose focus on the bigger goals of your business.

Once you have a following, then you can start to expand your offerings into other niches. Although, it would be wise not to stray too far from you niche because (again) you'll start to confuse your client base. For example, if you own a pet store, you may start offering boarding services for dogs or maybe a dog walking service. But it would be weird if that pet store suddenly started to sell ice creme.
 
"I'd rather just build a business, thanks."

If you have been following me for some time, you may have heard me mention the idea that the stages of developing a business is similar to the stages of raising a child.

A follower recently mentioned, "That's great, Ed. But what happens if you aren't interested in "parenting" infants and toddlers -- or if that just really isn't your forte? What if you're naturally better with adolescents?

It's a great question and affects many SkillPreneurs. It's the core of the challenge, because we are not great at all things (at all times) within the business building process.

One of the challenges is that we need to make sure we align ourselves with either someone who is great at what we are not, hire someone, partner with someone (not always the best) or do it ourselves.

The issue usually boils down to finances, and that is where the car hits the wall... Because of a financial challenge, we will not use the money to hire the right resources, and then we will dodge the tasks and duties that are needed at that stage, so in essence the plate may stop spinning, time passes, we feel that we are not getting the results we want or need and the downward spiral begins...

Building a business is somewhat like baking a cake... all the ingredients need to be mixed together in the right proportions and baked for the right amount of time. I use to think I could cook something faster by making the oven hotter... and all it did was burn the outside and leave the inside undercooked.

The moral of the story... Their are few short cuts you can take with building a business (just like with parenting). If you want the results you have to put in the time.
 
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