Q&A: Top 3 questions about coaching niches

Judging from the number of people who showed up for the last two monthly roundtables to discuss coaching niches, it's certainly a hot topic!

I asked each person to share their #1 question about niches; three questions came up more than any others:

1. What is a niche?

A niche is a position, activity or area of the market that particularly suits your talents and personality or that you can make your own. Ideally, your niche is where your passion and expertise intersect with the needs and wants of a viable target market.

To help my clients define their niche, I show them how to use a three-part niche formula: the Who, the What and the How.

1. The Who describes the target market:

I help/coach/work with <insert 1 or 2 significant characteristics that distinguish your target market>...

2. The What describes what the target market's most urgent agenda is:

...who are/or want to <insert the primary interest, problem or agenda shared by your target market>...

3. The How describes the coach's special expertise* - the thing that differentiates them from other coaches:

...by/through/with <insert your particular area of passion/expertise>.

Examples:

I coach doctors who are seeking balance between work and life through effective communication strategies.
I work with single women who want to find a life partner with the universal Law of Attraction.
I help highly sensitive people who want to live a less stressful life by leveraging their sensitivity instead of fighting it.

*Tip: DON'T use 'coaching' as your How. You'll need to be more specific than that if you want to differentiate yourself from other coaches.

2. Why is it so hard to choose a niche?

Many coaches don't yet have a niche because:

They're afraid that focusing on a niche will be too limiting.
Reality check: Focusing on anything generally concentrates your energy and attention so you can be more effective. This is definitely true of specializing in a niche (see below for 10 reasons why).
They have doubts about whether they have enough knowledge or expertise to succeed in a specific niche area.
Reality check: A quick inventory of your passions, interests, knowledge, skills and experience typically reveals more than one potential niche area. Once you choose a potential area, you can begin to gather more information and expand your expertise.
They don't understand what a niche is or how it can benefit them.
Reality check: The concept of specializing or working in a niche is a well-documented, effective marketing strategy. More information on what a niche is and how it can add value to your business.

3. Do I HAVE to choose a niche?

In over 10 years of training, mentoring and working with coaches, I have yet to see a truly successful coach who doesn't have a niche. Consider the benefits:

It helps you position your business so that your ideal clients can find you more easily.
Your marketing is more targeted, which saves time and money.
It's easier to develop solution-based products and services for a target market that share a common agenda.
Positioning yourself as an expert gives you pricing leverage.
A niche differentiates you from other service providers.
Your business is more profitable when you focus on the products and services that your niche most wants and needs.
Quality referrals are easier to get when you tap into the natural professional and social networks in your niche.
Clients in a niche market are more likely to invest money to resolve their issue.
It significantly reduces the competition when you focus on a niche, because you're not trying to compete in the larger market.
Niching attracts pre-qualified clients so that you don't have to spend time cold prospecting or pitching your services to people who aren't interested or motivated.