Is niching no longer smart?

I admit, I’m starting to wonder about niching, and how smart it really is.

For many years, I've been a huge advocate of VAs working with niches they felt passionate about supporting (and to be clear about my language, to me, a niche is working with a specific group or profession, vs. a specialty, which is about focusing on one specific sort of work--being a VA is a specialty, so is bookkeeping, so is social media support, etc.).

From a marketing perspective,niching is smart because it absolutely allows a person to focus time, attention, energy, and learning in one direction—that of a particular client group or profession. With that comes expertise, branding, and often, a steady referral stream of clients. What's really not to love about that, huh?

But from an income perspective, where it used to be a great way to increase earning potential because of the expertise gained in such tight focus on the needs of one particular group, that may no longer be the case.

While I don’t generally focus on the “down economy,” what I am noticing are some interesting shifts. First, of course, we’ve been experiencing for years a shift from security being found in a job, to security being found in self-employment. And now, the shift is even bigger—because although jobs have been disappearing all along, industries/professions had been fairly stable. Now, there are even industries that are disappearing, or on the way.

There was, for example, a time, when no one could have ever imagined the newspaper industry suffering. But today? Newspapers are going out of business left and right, and new media—social media, and increasingly available hand-held and mobile technologies are turning the average person into a citizen journalist who not only gets, but gives information to and from others far more quickly and easily than he could if he were reading a newspaper.

The same sort of thing with the traditional publishing industry, the magzine industry, the record industry…it’s really happening all over the place, and for millions of people, it's truly scary.

Those who had skills that were specific to only one group or one profession or one industry—they’re the ones who will likely have a hard time of it if that group/profession/industry tanks.

You can't bet on your job, and you really can't bet on your industry anymore, either.

And that leads me to wonder if niching makes the kind of radical sense it used to make, or if being a generalist—with skills that will work for many different types of clients, regardless of industry/profession/group, makes more sense.

If all of your skills focus in one direction, what would you do if that particular well dried up? How would you quickly move to something else--especially if your skills didn't support your doing that?

No moxie here today, per se…but the questions: What do you think about this? Is niching no longer smart?

Comments

[Anne M. Ferguson]

I so agree with your thinking, Stacy. This economic "shift" that we're going through is leaving no industry untouched (or very few), and they will never return to what was before, though may be better in the long run. Some industries may ultimately disappear. We forget that there were thriving industries which have now disappeared, due to the inevitable changes and advances in our economy.

[Dawn Goldberg]

I've always been a generalist, but more out of a sense of serving my clients - I'm doing some of the same tasks, but applying them to different industries, which makes it fresh - and keeps me interested.

As far as being a generalist because it makes economic sense, I hadn't thought of it that way. My thinking is that if you niche, then REALLY be an expert in that niche. So that if that industry starts to change or morph, you can easily adapt - or maybe even spearhead the change.

What an amazing VA you would be if you could tell your clients, "You know, I'm seeing this in the industry. You might want to consider making these changes..."

[Rachael]

Ok, so you're talking right to me! I am in niched in the Promotional Products industry. Since companies are cutting back, especially on their marketing budgets, the trickle down to me has been hard felt. My moxie question to you, though, is after you've spent years getting into a niche, how do you get out of it?

[Stacy Brice]

Anne and Dawn... thank you for jumping in.

Dawn...that's terrific if the industry is surviving. It's not so wise if the industry is tanking, unless what you tell your clients is to develop new skill themselves!

Rachael...Just change. If clients show up from that niche, let them know you're taking your business in a different direction. And clients you currently have? Phase them out as you get new ones who are not part of that industry. The first step? Decide that you want the change. :)

[Antonette Artiz]

Great post! My niched industry - nonprofits - are surviving, but not thriving. So, the cost of working with a VA at my level of ... expertise... is difficult for some. But I'm still finding clients and even more determined than ever to stay within my niche, because I'm just so passionate about it.

[Laurie]

Interesting points but what about when it comes to the concept of marketing - we can't target everyone right or our marketing plan will be pretty vague or overwhelming. I work with lawyers, and it is an industry that is definitely seeing changes in this economy (although in my case the changes are an opportunity).

I think probably niching can still be a very good idea, as long as you maintain some transferable skills and an awareness of your industry and if it is undergoing sea changes, so you can re-evaluate your choice.

[Stacy Brice]

Antonette and Laurie -- there are some niches that may change, but are unlikely to disappear. I suspect there will always be non-profits, and I bet there will always be attornies. I also know that there will always be medical professionals--humankind wouldn't survive without them.

So some niches are probably fairly safe to stay with--as long as, as you said, Laurie, VAs are paying attention, diving into the seas of change, whatever they may be, and are willing to morph along with their niches.

And Laurie -- I'm right with you about needing a focus (direction) for marketing; I mention that near the top of the post. But having a focus, and niching aren't the same things.

Developing a niche implies that the VA has expertise with the needs of that group. That's what allows the VA to create more value, and set her fees higher.

But one can focus in the direction of a group without niching in that group. One could, say, focus marketing attention in the direction of, say, coaches, without ever developing expertise.

Bottom line for me for this is that unless a VA has a niche she's pretty sure is going to absolutely survive for years to come because there's a need that group meets that simply cannot be met another way, then she's probably smart to stay there and keep focusing and building expertise.

But if she has a niche that's quickly and radically changing, struggling, and she can see the writing on the wall, she might consider where she needs to shift, or add another focus, and whether her skills will need to adapt or change as well.

Thanks for jumping in!