Let me guess. You’re here checking this post out because you’ve heard of the expression, “The riches are in the niches,” or you might have heard someone say, “You have to nail your niche. Appealing to everything is appealing to no one.”
You sort of get why business experts say these things, but you are still a bit skeptical as to how this can be applied to your service business.
Then, this post is perfect for you!
If you are new to me or my business, you may not know this, but I’ve written a series of posts about why finding your profitable niche is important and how to go about it (How to Niche Down Your Services Parts 1, 2 & 3).
For this post, though, I wanted to take a completely different approach. The reason is this:
What I have come to realize by helping entrepreneurs find their profitable niches in my business is that no amount of information about the importance of niching down will help if their minds are already fixed on resisting this concept due to their limiting beliefs.
Here, you will learn about 9 common myths among entrepreneurs that cause stagnation in their business growth. In other words, they force entrepreneurs to take a longer route to scale their businesses.
While you go through these 9 myths, I want you to ask yourself if any of these describe your impression on the concept of niching down. Understanding why you might feel this way & what the solutions are to shifting your thinking is the first step on the path of finding your profitable niche.
My goal for this post is to help you remove all of the doubts & resistance you have about niching down so that you can grow your business faster by finally being ready to try this effective way of positioning your business in the sweet spot.
After reading this post, if you feel super excited about taking a fresh look at your business, then I can safely say I’ve done my job!
Keep in mind, whatever I share with you in this post comes from my own experience and from the work I do with service business owners. These are not just theories; these are real life examples.
And, the best part is, by just reading this, you are preventing yourself from making the same mistakes I or my clients have made!
Not a bad deal, right?
If your answer is a huge “hell yes!” then you are ready to dive in!
By the way, be sure to read all the way to the end. I’m going to let you in on my secrets to creating my business on my own terms!
9 Niche Myths that Might Be Holding You Back from Designing Your Dream Business
OK, here we are. Let’s get right to it!
By the way, #7 & #9 may surprise you (these are my absolute favorites!) So be sure to read all the way through.
Once you go over these myths, you will find more in-depth explanations as to why these are not necessarily true in business.
Plus, you will discover where your beliefs and/or resistance stems from, how to reframe them so that you can free yourself from beliefs that do not serve you and your business well, and why the time is now for you to take the leap!
But first, let’s go down the list, shall we?
Take note if you identify ones that represent how you feel about the concept of niching down.
Niche Myth #1: I will come across as "less capable" & "less versatile” if I only focus on one niche.
Niche Myth #2: If my business is niched down, I'm going to miss out on a lot of opportunities.
Niche Myth #3: People want a one-stop shop.
Niche Myth #4: In order to niche down, I have to "give up" things that I'm fairly good at and/or I enjoy doing.
Niche Myth #5: I will be stuck with my niche forever.
Niche Myth #6: I have a niche. I'm in the (fitness, beauty, wellness, business, travel, food) niche.
Niche Myth #7: Being a generalist is bad & this is the opposite of niching down.
Niche Myth #8: Once I niche down my offers, I won’t get to have fun in my business.
Niche Myth #9: I have to have various offers so that I can minimize the chance of getting "no's."
So, how many of these do you identify with? More importantly, how do you feel when I tell you that all of these are false beliefs?
Do you feel a sense of relief?
Do you feel a bit of discomfort now that you know what you thought was true may not be the case?
Or do you find yourself getting curious and wanting to know more?
Whatever you are feeling now, it is totally OK to take your time & take it all in.
I say this because…as much as I am all about strategies & planning, I also find that being mindful of how we feel is imperative to learning something new.
Once you acknowledge how you are reacting, sitting with your thoughts & feelings for a bit will help you to resist less.
If you are ready, allow me to walk you through each of the myths.
Niche Myth #1: I Will Come Across as "Less Capable" & "Less Versatile."
Fact: Specialization is a sign of confidence in what you offer.
The reason that this is the first myth is simple. This is by far the most popular counterargument I hear from new entrepreneurs.
In case you did not identify with this statement, here are a few variations that pretty much say the same thing so that you can’t just brush it off & move on:
“I always thought people expected me to offer a wide range of services in my industry. (So, not being able to do that would hurt my business.)”
“Narrowing my focus in my practice will give the impression that I don’t have enough credibility & experience. Maybe they won’t take me seriously.”
“It makes me feel awkward when I tell prospects that I don’t offer certain things & then seeing their reaction as if I have let them down or something.”
Do any of these address your concerns? All of these statements describe the same belief: being able to offer a wide variety of services is a way to boost my confidence and niching down will have the opposite effect.
Now let’s find out if niching down really means limiting yourself by asking yourself this:
“Would you be disappointed or find less value if you discovered that a fine dining restaurant you always wanted to try out only served a modern interpretation of classic Italian and not sushi?”
No, right?
Here’s another question for you:
“Which do you value more? A simple one-page menu with only a few items listed accompanied by prices without a decimal point? Or a diner menu with hundreds of items & multiple cuisines starting at $4.95?”
This is a no-brainer. Of course, you identify the simple menu to be premium.
So…why doesn’t the same thing apply to your business?
What if offering a variety of services does not prove how qualified you are?
Entrepreneurs who believe that niching down will make them look less capable & versatile suffer from feeling inadequate about themselves.
Because they feel inadequate, they have the urge to pile on as many offers as they can create to compensate for the lack they feel.
But the reality is, no one values a buffet restaurant or a diner just because these places offer everything under the sun. To make it even worse, their ideal customers who are willing to pay top dollar to solve their problems would consider those entrepreneurs to be… amateurs.
Ouch….I know.
Because they aren’t fully committed to their chosen niche, not only do they not feel they are enough even with everything they offer, their inadequacy shows up in their voice, their demeanor and their facial expressions.
Naturally, that will make prospects react accordingly with skepticism, disappointment, and awkwardness.
They are simply responding to your beliefs and your energy. If you aren’t confident in the kind of results you can deliver through a simple offer, they will sense it.
On the other hand, if you show up believing that what you offer is THE solution for them, they won’t even question what else you offer.
In other words, whether or not people will consider you to be an expert has nothing to do with the number of offers you have under your belt. It has everything to do with how you present yourself with confidence.
Niche Myth #2: If My Business is Niched Down, I'm Going to Miss Out on a Lot of Opportunities (Thus I Make Less Money.)
Fact: You get to work with your ideal customers only.
Here’s the deal. We make horrible decisions when we let the scarcity mindset take over our brains. You might be able to recall a few incidents from your past by doing this. This is because we are only paying attention to what we lose and not what we gain from our actions.
When we try NOT to lose something, we tend to play it safe. Playing it safe leads us to opt for “middle of the road” decisions that no one cares for because safe options don’t stand out as unique.
Instead of truly going “all in” with your offer that delivers transformation, your mind wanders by thinking…
“Just in case… I am going to say I also do XYZ.”
“Just in case… I am going to create a few variations of the same offer.”
“Just in case… I will list everything I’m capable of handling.”
This is a prime example of how much we are wired to believe that less offers equals less opportunities to make money. But this is far from reality. Actually, it’s the complete opposite.
Less offers equals more opportunities.
This may seem counterintuitive to you. That’s why I’m here to show you why this is actually true.
If you have just a few sought after offers that are within your carefully crafted niche, you will:
🎯 become a "no-brainer" go-to solution for your ideal customers.
🎯 be known as a leading figure in your field.
🎯 have a luxurious amount of time & resources to perfect your signature offer.
🎯 find it so easy & simple to communicate with your ideal customers.
🎯 clear out all of the clutter in your business so that you can scale without killing yourself.
On the flip side, if you are to let FOMO take charge of your decision-making, you will:
❌ Burnout from having to promote & market your offers non-stop.
❌ Cause confusion among prospects who end up not buying anything.
❌ Deliver subpar solutions because you have “so much to do” to keep all of your offers alive.
❌ Be less memorable to your ideal customers as they can’t remember exactly what you do.
❌ Have a hard time prioritizing in your business causing you to be constantly stressed out.
Do you see the contrast?
Here is another concept I would love for you to master when it comes to dealing with the feeling of missing out.
When you strategically plan to miss out on less important things, you don’t feel like you’re missing out on anything because you are proactively, confidently & powerfully making that decision.
Let that sink in. This is the move seasoned entrepreneurs use for all aspects in their lives, and you can absolutely do the same.
Niche Myth #3: People Want a One-Stop Shop.
Fact: People will pay to have a specific problem be solved by someone who can articulate their problems and his/her solutions.
I get this a lot, especially from entrepreneurs who started their career by working for various agencies i.e. ad agencies, design agencies, PR agencies, digital marketing agencies, and content houses.
If you are one of them, this part is a must-read for you!
Entrepreneurs with agency experience are used to seeing their former employers identify themselves as a “one-stop” solution to their customers. They actually take pride in being one.
So, if you thought that starting your own business meant that you also had to offer a variety of services just as your former employers did, then I don’t blame you as that’s an intuitive move on your part.
Just to be clear, the agency model exists as a business model, and I’m not here to stop people from running an agency if they have the money & resources to do so.
But here are a few issues with the agency model if you are starting out as a solopreneur or a boutique agency operator:
1. Capacity issue: Being a one-stop shop is a promise you may not be able to keep. Even big agencies drop the ball by promising too many things to their customers. I am sure you’ve probably seen that happen at your old job. “Juggling” is the enemy of delivering transformation.
2. Unfit customers issue: Unless your customers are all major brands with big budgets, prospects who are looking to find a versatile agency with an affordable price tag do not understand what they want or what’s involved with the process. Most likely you’ll end up with clients from hell who will rob you of all of your energy & time for very little money.
3. A lack of competitive edge issue: Becoming a one-stop shop means that you have made the decision to compete with the big dogs in the industry you are in. If you understand the implication of it, you also know that you are setting yourself up for an uphill battle that you don’t need to place yourself in. To be competitive among major players, you are required to deliver more than what they are capable of delivering. Can you walk the walk? That’s the question here.
On the other hand, if you make the conscious decision to specialize in solving a specific & painful problem that you can articulate more than your ideal customers can, you will be valued as an expert.
“Niche Down” calls for courage, discipline and confidence, which leaves no room for the ego that wants to tell the world everything that you can offer. But the reward for doing this work is that you’ll be able to completely bypass all 3 of these issues.
The question is, which will you choose?
Niche Myth #4: In Order to Niche Down, I Have to "Give Up" Things that I'm Fairly Good at and/or I Enjoy Doing.
Fact: No. You just don't talk about everything you can offer to create unnecessary friction in their decision-making process.
Just like Niche Myth #2, this has a lot to do with the scarcity mindset coupled with the resistance to new ideas and concepts or the fear of the unknown.
If someone is already resisting the idea of niching down, that person will immediately search for the reasons he would lose or miss out or give up on by niching down.
The more logical the explanation he comes up with, the more convincing it is to go with the belief of “niching down doesn’t work for me.”
Once he gets to that point, he feels safe. He feels like he is making a sound decision by not going with niching down. Now he can get back to his familiar environment where he takes on anything & everything that comes his way as he always has done for the sake of “diversification.”
He tells himself, “See, just like personal finance, I need to hedge my risk in my business, too. Offering as many services as possible is a way to diversify my business.”
This sounds logical to him. No, no, he is not coming up with excuses; he is legit being “strategic.” The more he tells this to himself, the more believable it gets.
Then he wonders, “Why am I always so tired? Why do I feel drained?”
Do you see the vicious cycle here?
But I have good news if you feel the same.
You don’t need to “give up” anything while you niche down your business.
Here’s the misconception:
Too many business owners believe that having broader offers is the way to hedge their risks. In reality, they are doing themselves a disservice because they are positioning themselves in the “unmemorable” category in their prospects’ minds by saying, “We offer everything to do with XYZ.”
Instead, if you are open to clearing out all of the “offer clutters,” simplifying your messaging & being known for a specialized practice, your prospects will likely remember exactly what you do.
Here’s a likely scenario if you are willing to commit to your chosen niche:
They may not take you up on your offer right away. But they’ll remember what you are specialized in. They may even refer their contacts to you simply because they’ve managed to remember what you offer, thanks to you for making it easier for them to do so.
While you develop your working relationship with your customers, they will get to know you & your team better. What happens next is for them to say something like, “I know you don’t do this, but I would really love you to consider taking this on because I trust you.”
Chances are, you are fully capable & will enjoy taking on this extra thing that you don’t publicize. So, you get to decide whether to take it on or not. It’s completely in your control.
The bottom line: Niching down only means that you don’t broadcast everything you do, but this does not mean you don’t get to do the work you don’t advertise.
See how this works?
Let me offer a fun exercise so that you’ll understand this concept without a sliver of doubt.
Label these people with the descriptive noun(s) that are associated with them:
Simon Sinek
Brené Brown
Gary Vaynerchuk
Kim Scott
Gretchen Rubin
Tony Robbins
Answers:
Simon Sinek Why
Brené Brown Vulnerability
Gary Vaynerchuk Hustle
Kim Scott Radical Candor
Gretchen Rubin Happiness
Tony Robbins Self-Help
These are what they are “known for.” But that does not mean these are the only topics they talk about or offer help with.
Notice how easy it is to remember what they represent and what they stand for. These are just a few examples of people successfully positioning themselves with the niches that are in demand.
Niche Myth #5: I Will Be Stuck with My Niche Forever.
Fact: Your business will evolve. Your loyal customers are more supportive than you think. Some will be happy to come along for the ride with you & some may not, but your business will be just fine regardless.
Another way people address this concern is, “Once I become known for one thing, it’ll be impossible for me to pivot.”
If you feel that way about niching down, I have great news!
You won’t be stuck with your current niche unless you choose to. The reason why niching down is the key to scaling your business during the early days of your entrepreneurial journey is this strategy helps you stand out & get noticed faster.
Along the way, you will grow your audience who will get to know you and your expertise better. As a result, you build trust with them. Once they trust you, they tend to be much more supportive of the decisions that you make in your business.
Still skeptical? Well…
News flash: You aren’t a child actor.
Here’s what I mean by this. You don’t have to be fearful of having to reinvent yourself & not being able to convince people with a new identity like child actors would.
You are free to design your business the way you envision.
You are free to take your business in any direction you want in order to stay inspired.
You are free to take your customers along on your journey as an entrepreneur.
Let me say this again: You aren’t a child actor. So, don’t turn into a drama queen as if you will be stuck “forever.”
Instead of worrying about it, here’s a question I’d like you to ask yourself:
“What are my real fears when I consider niching down my business?”
You might be realizing this by now. Myth #1 through Myth #5 are just excuses. These are 5 ways your brain resists the idea of niching down to protect yourself from having to do something different that you haven’t done before.
Your brain can get very clever and creative when it wants to convince you to stay where you are by listing the things you will lose. Beyond the 9 myths I’m listing here, there are more excuses that you or others can come up with just to avoid niching down.
The only way to get rid of the trash talk your brain transmits is to clearly understand what you are afraid of. When you are ready to face your fears head-on, breakthroughs will happen.
Niche Myth #6: I Have a Niche. I'm in the (Fitness, Beauty, Wellness, Business, Travel, Food) Niche.
Fact: These are industries & sectors, not niches.
Let me be crystal clear on something before we dive in.
I am not in the business of pointing out or nitpicking what’s right or wrong with widely used business terms just for the sake of being right or showing off. This is not something I care deeply about.
But this one is an exception. I firmly believe that it is my responsibility to clarify the difference only because not fully understanding it will actually have a massive negative impact on your business.
Niche, by definition, is meant to describe something that is unique and narrowly scoped. You can also look at it as a “hidden gem” that makes you money if done right. Yet this term is misused by many all over the internet.
Usually, it goes something like – “I’m good. I have a niche. I’m in the fitness niche.”
What gets me is the way that people put an emphasis on the term “niche’ to be something…cool. Meanwhile what they are talking about is either an industry or a sector.
For example, did you know that the market cap of the fitness industry in the US alone is 96 billion dollars?! If you knew that, you wouldn’t imagine describing your niche to be…fitness without feeling a little embarrassed. Think about how much your market share is in this…gigantic market!
That’s not all, don’t even get me started on the term, “sub-niche.”
If you have enough understanding about what niche stands for & why it is vital, you don’t need to call your niche a sub-niche. If you feel the need to call it a “sub-niche” then you are cheating yourself by not niching down enough.
Sectors/Industries ≠ Niches
I hope I’ve made it very clear.
The reason it’s dangerous to get sectors/industries and niches mixed up is that you will end up not niching down enough to position your business to be profitable.
Obviously, there is no need to beat yourself up if you didn’t know the difference. It’s simply not productive.
But here’s what you can do instead.
Brainstorm ways to segment the industry you are in to identify an underserved market. There are 2 things to keep in mind when you do this exercise.
1. Underserved markets do not guarantee availability & profitability. Some of them are simply underserved because of very little to no demand or the costly issues that keep people away from tapping into those markets.
2. There are many ways to slice a sector or an industry. Some of them are less effective when it comes to identifying a profitable niche.
In the beginning, though, try not to overthink when you brainstorm. Keep track of all ideas until you are ready to pick your top 5 ideas to test.
Niche Myth #7: Being a Generalist is Bad & This is the Opposite of Niching Down.
Fact: Being a generalist by uniquely positioning yourself in an obscure (or small) market can be considered as a niche. Being a generalist in a wide open, red ocean market isn't ideal.
This trips up a lot of business owners where they believe that being a generalist works against the idea of niching down. That’s why, as I mentioned earlier in this post, this is one of my favorite topics to cover.
To put it simply, there are many ways to go about niching your business down, and in some cases, being a multi-faceted generalist could be in demand depending upon how you position your business in the market.
When the topic of niches or niching down comes up, many think that it is all about choosing a specialization. It’s a large part of it, so it’s not wrong. However, this is not the only way to go about defining your profitable niche.
If you are able to articulate what specific problem you solve and why your deep understanding of the overall inner workings of that specific practice or industry is needed, this in itself is the act of niching down to stand out.
Here is an example with 2 different scenarios.
If you are a digital marketing expert, and you offer your services to any business needing digital marketing management, that would be too broad for you to stand out in the market. I’m sure you agree.
On the other hand, say, you offer holistic digital marketing management as a generalist to high-end hospitality businesses. By specifying who you serve, you are defining your niche in a clear manner where competition can be less fierce.
In this case, you don’t need to limit your offers to only do, say, Facebook advertising only or content writing only. Most likely, high-end hospitality businesses need someone who is versed in all aspects of digital marketing.
Also, this gives you an unfair advantage where you can showcase your expertise by explaining the difference between catering to high-end hospitality businesses and non-profit/NGO organizations, for example.
By niching down who you serve, you will avoid being stretched out too thin while remaining a skillful generalist that orchestrates the entire digital marketing effort.
The key here is to be ruthless with niching down your target market enough so that your messaging stays crystal clear.
Niche Myth #8: Once I Niche Down My Offers, I Don't Get to Have Fun in My Business.
Fact: Perfecting your offers & the experience that you will provide through them will take some time & intentional work. As the CEO of your company, you will find joy in the process.
Does the below statement describe your sentiment about niching down?
“It will be so boring if I niche down my business!”
Sounds believable and logical, right?
Let me explain what’s happening here. As I touched on this under Myth #5, when we face an unfamiliar concept or idea, we are wired to come up with all sorts of “legitimate sounding” excuses so that we won’t have to deal with it.
In a way, it’s your brain trying to protect you from the unknown, and this is pretty normal.
Don’t get me wrong. I’m all for having a great time while running a business. You want your business to inspire you so that you can keep going. I totally get that.
Plus, why do we even run our businesses if we don’t get to do what we are meant to do? So, no argument there. I’m with you.
But believing niching down will turn your business into a boring one is such… nonsense. Here’s why.
In order for this statement to be true, the following assumptions also need to be true:
● The work is going to be repetitive.
● There’s no creativity involved in the process of niching down.
● Nailing my niche & executing it are so easy, I’ll get bored quickly.
● Niching down means I’m offering a cookie-cutter solution.
● Having a variety of offers is the only way for me to be creatively satisfied.
Now watch how I counter every single one of those statements to be untrue.
There will be some parts in the process of delivering your work that will be repetitive, but not entirely. These parts will be automated by tools or your team so that the entire process will be streamlined.
This will provide you with the opportunity to free up your time & energy so that you can focus on maintaining high standards for the work you and your team will deliver. Mind you that this task alone will require some time & energy to accomplish. So, you don’t get bored so quickly.
Next, defining your niche will require quite a bit of experimenting and testing. This alone calls for you to be creative.
On top of that, there is no guarantee you will nail it on the first or even the fifth try. The process will challenge you to the point that you will feel like you are running out of creative ideas.
If niching down was so easy, then everyone would be doing it. Right?
In reality, that’s not the case. I don’t just say this because the work required to define your profitable niche is difficult. It’s because the strategy calls for the right mindset, the right expectations & the skills to spot the easily overlooked gem in your practice.
Once you commit to believing that niching down will work for your business, you will find yourself enjoying the journey and the process. Not only that, but soon you will discover that having a variety of offers only kept you busy and made you feel like you were making progress.
In reality, though, having a variety of offers keeps you from focusing on one offer that consistently brings revenue into your business.
Just to summarize, creating simplicity in your business can be a joyful thing for 3 major reasons:
1. The challenges associated with the niching down process will stimulate your brain.
2. You will make more money, so you will want to do more of it.
3. Creating a seamless process based on the newly discovered niche is exciting.
Having helped many entrepreneurs with this process, I can assure you that you are never going to be bored. Case closed.
Niche Myth #9: I Have to Have Various Offers So That I Can Minimize the Chance of Getting "No's."
Fact: You've created numerous offers to avoid rejection & not for the growth of your business. This is a path to burnout.
Can you tell I saved the best one for last? I certainly did!
Imagine watching a magician with a top hat. What’s in the hat? You watch him pull out all kinds of things. A dove, a fake bouquet, a bunny, silks, coins, sponge balls… You name it. He’s got it.
Do you know where I’m going with this? You probably do.
I just described business owners who believe hearing “no” from prospects is rejection. Naturally, to avoid hearing “no,” they have created as many offers as they can possibly think of so that they can minimize the chance of hearing…”no.”
While I get where this is coming from, I must emphasize how unsustainable it is for someone to come up with endless offers until prospects feel like they’ve found the one they want. It’s like diving into a messy sales corner at an apparel shop not knowing what to expect or if they will find something they like.
In the end, this only confuses potential customers.
Have you ever heard of the saying, “Confused minds never buy”?
This is a fact.
The only way out of this is to work on your fixed mindset where you believe “no” means rejection.
So, I am going to share 2 things here that will help you overcome your fear of rejection in case you identify as one of them.
First, one of our main jobs as business owners is to help prospects make a decision they can feel good about. The best way to achieve this is to make the sales process clear, frictionless & no-brainer.
Even if they don’t sign up or buy, they will remember the experience interacting with you as a pleasant one, especially if you focus on providing value regardless of the outcome. This will increase their desirability to work with you in the future.
Second, consider this: What if “no” doesn’t mean rejection?
Let’s take a moment to think about this.
Hearing “no” isn’t easy for anyone, and you certainly aren’t alone. But what if “no” has nothing to do with the quality of your offers or whether you are cut out for the job and that it’s simply not a “match” at this time?
If you are willing to give this theory a shot, you will immediately realize that “no” can be a great thing for you and your prospects. It saves you from working with an unfit customer. It also saves them from experiencing “buyer’s remorse” by talking themselves into something they aren’t ready to commit to.
I know this sounds a bit strange, but wouldn’t this be a win-win?
It’s just a matter of reframing “no” as a reward for being very clear on what you offer and what you don’t.
This is a minor shift in thinking, but this way of thinking has an immense impact on overcoming the fear of rejection.
So, What’s Next?
Now that you have a much deeper understanding of how your mind plays games with you when you consider new concepts, strategies & ideas you have not yet tried, take a moment to acknowledge & appreciate that you are no longer the same person you were before reading this post.
If you are to takeaway just ONE thing from this post, I would love it to be this:
Niching down will not limit you; niching down will FREE you.
Here is the most important question I have for you:
“Are you ready to embrace the unknown to craft your business you will absolutely love?”
I sure hope your answer is a big “yes.” The next step is easy! Sign up for my weekly newsletter to get the latest & exclusive offers that are only available for the subscribers. (Also, there’s a ton of things I share that I do not publicize!)
See you on the other side!