Staying narrow or casting a wider net: Finding your focus in a dynamic market
Paula Fleming, CMSO, discusses the critical strategic decision facing business leaders: whether to deeply specialize in a niche market or broaden their reach to a wider audience. (May 13, 2025)
Hey there, business builders! I'm constantly observing the strategies that help businesses thrive – and sometimes, the ones that lead to stagnation. One fascinating area I see businesses grapple with is the decision of focus: should you laser in on a specific niche, or broaden your horizons to attract a wider audience?
It's a tale of two strategies, and frankly, there's no one-size-fits-all answer. Let's dive into a couple of compelling examples I've encountered recently to illustrate this point.
The Power of precision: The real estate law specialist
I recently had a conversation with a lawyer who has built a successful practice by specializing solely in Real Estate Law. He was resolute in his decision not to broaden his focus. Why? Because he's become the go-to expert in his chosen field. His deep understanding of the intricacies of property law, his established network of real estate professionals, and his track record of success in this specific area have made him a magnet for clients with real estate legal needs.
His strategy is rooted in becoming a recognized authority. By focusing narrowly, he can:
Develop deep expertise: He stays ahead of the curve on all the nuances of real estate law, offering specialized knowledge that a general practice lawyer might lack.
Target marketing effectively: His marketing efforts are highly focused, reaching individuals and businesses specifically involved in real estate transactions and disputes.
Build strong referrals: Realtors, mortgage brokers, and other real estate professionals are more likely to refer clients to a specialist they trust.
Command premium pricing: His specialized knowledge and proven results allow him to position his services at a higher value.
For this lawyer, the strength lies in being a big fish in a well-defined pond.
Casting a wider net: The restaurant embracing diverse events
On the other hand, consider a local restaurant I've been following. Initially, they heavily marketed themselves as a wedding venue. While they had some success, they recognized that relying solely on weddings created seasonal fluctuations and limited their potential revenue streams. Their smart pivot? To broaden their event focus.
Now, they actively promote their space for corporate events, birthday celebrations, anniversary dinners, and even community gatherings. This strategic expansion allows them to:
Increase revenue streams: By catering to a wider range of events, they can fill their calendar more consistently throughout the year.
Reach a larger customer base: They're no longer solely reliant on couples planning their big day; they're attracting businesses, families, and community groups.
Maximize facility utilization: Their event space isn't sitting idle during off-wedding seasons or weekdays.
Build brand awareness across different segments: Hosting diverse events introduces their restaurant to a broader audience, potentially leading to regular dining customers as well.
This restaurant recognized that by opening their doors to a wider variety of events, they could build a more resilient and profitable business.
So, what's the right path for your business?
The decision to niche down or broaden your target audience depends heavily on several factors unique to your business:
Your industry: Some industries naturally lend themselves to specialization, while others thrive on broader appeal.
Your expertise and passions: What are you truly excellent at and passionate about? Focusing on your strengths can be a winning strategy.
Your target market: Is there a large enough market for your niche offering? Or would a broader approach allow you to tap into more significant customer segments?
Your resources: Do you have the resources to effectively market to a narrow niche or a broader audience?
Your competition: What are your competitors doing? Is there an underserved niche you could dominate, or is the broader market ripe for competition?
Your long-term goals: What do you envision for the future of your business? Do you want to be the leading expert in a specific area, or a well-known provider for a wider range of needs?
The bottom line:
Whether you choose to specialize like the real estate lawyer or diversify like the restaurant, the key is to make a conscious and strategic decision based on a thorough understanding of your business, your market, and your goals. There's power in focus, but there's also opportunity in breadth.
As the BBB, we encourage you to carefully consider your options, conduct thorough market research, and ultimately choose the path that best positions your business for long-term success and ethical engagement with your customers.
