How to build a million dollar business in a tiny niche?
There is an architectural and social movement called Tiny living. In case you are not familiar with it, the movement advocates simple living in small homes.
Dan Louche is the founder of TinyHomeBuilders.com.
Dan’s business has about a million dollars in revenue a year.
He began building Tiny Houses in 2009 when he built the first one for his mom.
Dan has been featured in various shows and publications such as NBC and ABC’s Good Morning America.
I am very excited to have Dan on Success Harbor today because the tiny house market is such an interesting niche. I know many of you are struggling with finding a business niche. The following interview will help you see that there are big opportunities in small niches.
Listen and learn from Dan what it takes to start a business:
How to start a niche business?
Are you operating in a niche in your business? If not, then you’re probably paying way too much for advertising. You see, you can get far better results than what you’re getting now if you get niche-specific with your target audience. For example, if you own a tiny house-building business, you can raise your prices and earn more by going into a niche. So instead of building all kinds of houses, consider only building tiny homes and change the niche of your business.
Why would you earn more by going into a niche like this? Well, the answer should be obvious. You see, the prospects that you would be focusing on will perceive you as the go-to guy in your niche. For example, people who want to buy a tiny house want a home built by an expert. If you only serve the tiny home niche, your customers can rest assured that their house will be built by someone who knows what they’re doing. They will benefit because they get a tiny house expert-built home and you will benefit because you won’t have to compete with every builder in the world.
I didn’t figure this out until I came to the conclusion that I’m making less money in my business than rivals of mine. Once I discovered that they were servicing a different set of customers in my niche, I immediately hopped on the bandwagon and started servicing a group of different customers. This did wonders for my business, and I think it will do the same for you too.
So how can you focus on a specific group of people in your niche? Well, one way to learn how to do it is by looking at lawyer online ads. Instead of being a general lawyer, these people are targeting different sets of prospects. For example, one lawyer targets on-the-job injuries; another is targeting people with mesothelioma; another is targeting car accident injuries. This is just being smart. These lawyers can send their prices through the roof simply because their marketing message is tied to a more specific group of people.
You should figure out ways to do the same thing also. I’m confident that you can get even more niche-specific in your business. And you must do so because as long as you operate in a general, huge market…. you’re destined to go out of business sooner rather than later.
So can you come up with any ideas on how to go into a niche in your business? The first step involves changing the theme of your business. If you think that this will take a long time, then, believe it or not, you won’t. The first step is revising all of your ads and other marketing pieces.
Once you have changed your ads, you may want to consider revamping your place of business. For example, if you own a bakery, you could turn your business into a cupcake shop. You could be the number place in town (or in the state) – that provides excellent cupcakes at low prices.
You can get creative with your approach, but the goal is to position all of your products and services in a way that seems like the obvious answer to your prospects. So take your time on changing the niche of your business, and you will be good to go.
Niche marketing advantages
When marketing your products and services, you always want to narrow your marketing efforts. Don’t start in a large pond and stay there. Instead, focus on a small pond and offer specialized services to the occupants of your smaller group of people. This way you can offer more money for your services, and earn more profits in your business.
This is called “niche marketing,” and it’s a principle that not many business owners understand. You see, what most business owners do is advertise in a wide variety of mediums, but they don’t focus on crafting a single message to a group of people who are more likely to do business with you.
Nine times out of ten, implementing niche marketing is easy. Remember, all you’re trying to do with niche marketing is starting with a general mass market, and then refining it to the specific groups of people most likely to buy your product. Doing niche marketing is important if you want to spend less on advertising, differentiate from the competition, and improve your sales and profits immediately.
I highly recommend that you start implementing niche marketing in your business. If you think that niche marketing wouldn’t work for you, then I think you have the wrong idea. All businesses can operate in a niche. I want to share with you a few examples that proves I’m right.
If you own a construction company, consider building tiny homes only or remodeling instead of being a generalist home builder. If you focus on a nich, anyone who is in the market for a tiny house will more likely hire you than a generalist builder. When your business serves a niche, you are the obvious choice for the job. Because of your expertise, you have much less competition to worry about.
You can do the same in your business also. As another example, consider web designers. Instead of competing against all web designers, go into a niche and only service biotech companies, law firms, or authors. Again, this is a fast way to attract a specific market. Focusing on a specific niche will make you the best possible choice for the job.
Plus, you can charge more for your services because you’re a specialist – and your target customers will gladly pay you a higher price, especially if you deliver on your services.
Niche marketing is the only kind of marketing that you should be doing. You’ll earn more, work less, and attract more customers to your business. Without niche marketing, you’ll be competing with the big boys, and you will find yourself in a price struggle with other business owners. To avoid this from happening, simply use niche marketing.
Latest posts by George Meszaros (see all)
- 7 Signs You Might Have The Personality to Succeed in Business - January 9, 2023
- 5 Accounting Tips That Will Help You Succeed - January 8, 2023
- Two Factor Authentication (Simply) Explained - January 7, 2023