In a meeting last week, one of my Vistage members discussed his expansion into a new business area and how to price his services. The way he described the new market was comprehensive. As usual in Vistage, this led to a great discussion challenging his assumptions, followed up with some excellent ideas. However, several of us, including myself, asked the critical question, “What precisely are you offering your clients.” I believe everyone needs to ask this question and drill down to the micro-level because, as a coach once told me, “You have to be famous for something!”
Why You Need to be Famous for Something
As an entrepreneur, focusing on a specific area of expertise is essential instead of accepting any work that comes your way. This focus allows you to clearly understand your products or services, which is crucial for generating referrals and building your brand. By defining and communicating your target audience, you set yourself apart from the competition and make it easier for potential clients to understand your value proposition.
What is the job to be done?
The concept of “The Job to be Done,” introduced by Clayton Christensen, suggests that people purchase services or products to fulfill specific needs. By identifying the core problem your clients want to solve, you can clarify your value proposition and better communicate your offerings. Understanding the “job” you’re hired for makes it easier for potential clients to grasp your expertise and ensures that you stand out in the marketplace.
My Definition
As a growth business coach, I work with CEOs and leadership teams of companies with revenues from $5MM to $50MM. This niche allows me to focus on helping these clients build a growth engine for dramatic profitable growth. By narrowing down my focus, I can clarify my message, making it easier for potential clients to understand my expertise and the value I bring to their businesses.
It feeds Jim Collins’ BHAG.
Understanding what you can be the best at helps frame your passion and gives your business direction. By identifying why your company exists, you can develop your BHAG (Big Hairy Audacious Goal), which is the foundation of your long-term strategy. Clear answers provide clarity and direction for your business, ensuring you stay on track and focused on your ultimate vision.
People know what you do.
Describing the job you do clearly and concisely enables people to understand why they should use your services. Specializing in a specific area makes it easier for potential clients to connect with you based on their needs. Providing a clear message about your services increases the likelihood of referrals and creates a strong foundation for your business.
You can find your tribe.
Specializing in a particular area helps you identify your target audience or “tribe.” Knowing your tribe allows you to understand their preferences, characteristics, and habits. This targeted approach enables you to create marketing efforts that resonate with your audience and generate better results, ultimately leading to increased success and growth for your business.
If you focus on a “job,” you can do it well.
Specializing in a specific area allows you to develop increased skills and recognition in that field. You can achieve better results and differentiate yourself from competitors by honing your expertise. Avoiding the commodity trap and staying focused on your niche ensures your business remains competitive and successful.
If done well, you sell “Value.”
By focusing on providing value to your clients, you can move beyond pricing based on time and materials. Instead, you can adopt a value-based pricing approach, which improves margins and allows you to maintain your leadership position in the market. This pricing strategy ensures your business remains competitive and maintains a strong market presence.
Discovering Your Niche
Determining your niche takes time and effort but offers substantial returns in the long run. Engaging a coach or working with your team to facilitate discussions can be beneficial in identifying your niche. Investing time and energy in finding your niche maximize your business’s potential and sets you on the path to success.
Copyright (c) 2021, Marc A. Borrelli
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