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Should You Niche Down? | Products & Services Business

Written by Andriy Boychuk
1 min read

 

In this video, I am going to be discussing how many services you should offer and how many businesses should you have. Is it important to do more or less, and what is more beneficial. At first, it can seem like a great idea to offer many services under 1 main topic, for example construction, but you can’t be the best at drywall, roofing, guttering and carpentry.

You may get a good number of jobs and work, however each job won’t be at the best quality because most people have a speciality and those customers will be very happy, however the skills that you are not best out won’t leave the customer very happy.

The saying “Jack of all trades, master of none” is so true and eventually those people realize this when they are taking on too many jobs and burn themselves out. The value, quality of work and finished product won’t be as good.

It is important to choose 1 or 2 areas where you are confident in, have experience in and enjoy doing it.

– Should you niche down in your business or not? So here’s my personal experience. In 2016 I quit my job and start my own business. Actually, it was business of one. So actually I was freelancing. When I put myself out into the world, I didn’t know what to offer, so I offer everything that I could and guess what? I attract almost nobody. There were like clients here and there, but if somebody asked me like, “What do you do?” I have no clue because I had a list of things that I did. So it’s very important lessons that I learned, and I see many business owners making this mistakes. And I know it’s very hard to do, but still, I highly encourage you to do this thing. I promise you will see difference in terms of number of clients you have, in terms of sales and so forth. This is one of my favorite book called “The One Thing” and it took me three times to read it, to start implementing this in my life and in my business. What do I mean? I believe in 2019, or even in 2020. The start of 2020, I used to have close to five businesses. But five business sounds cool, but honestly it was so inefficient and not productive. And I did not make any money in those businesses, just like losing my time and spreading myself thin. So then 2019 in December, I decided to close all my businesses except two. And one is a real estate and is more on passive side and just keep my email marketing agency. And in my email marketing agency, I said, “I will focus only on one.” Vertical is online retailers e-commerce and I will do only email marketing for them. It was very attractive to do other services like Facebook or ChatBot or Facebook advertising, SMS marketing and so forth. It was very easy to add to my agency as our services. However I stayed laser focused only on one thing. And this is how we become successful. And in 2020, we grew up nine times in terms of revenue. In terms of team, we grew up almost 10 times. So when I talk with my friends, family and other peers, sometimes I hear like, “Oh, I’m planning to open a business.” and I am asking, what kind of business? Just give you a hypothetical example. Let’s say somebody says like construction business. And I said, “Any particular area?” “No, I will do everything this way.” If somebody needs construction, I would be able to serve them. It might sound like a great idea. Why? Because you think everybody’s your customer and any work you can do, you will make money. However, it’s not true because you can not improve and optimize each skill, like putting roofing, or mowing the grass, or putting drywall. It’s special skills and if you do it enough, you can optimize it and do it more efficient, better, cheaper, and so forth. Cheaper for yourself as well as for the customers. And if you specializing on one thing, let’s say putting drywall, everybody will recommend you because you are specializing only in that thing. You are not jack of all trades and master of none. This is the lesson I learned in my business. And I highly recommend if you still not deciding which way to go, I know it’s hard and it’s hard to decide, but try. If it didn’t work, try next one. Do not try many things at once because sooner or later you will burn out. And I’m sorry to tell you, but sooner or later you will fail. Running multiple businesses is hard. Personally I don’t think it’s a smart choice, so start from one business. And if you want to be a next Richard Branson, start one business, make it successful and then start another one and so forth. So this is what I learned in my life, in my business life. I just want to share it with you. If you have any additional questions, please let me know. And if you have your own story that you would like to share. So please share it under this video and yeah, I would like to read it and talk to you in the comments below. Thank you.

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