How to Choose the Right Niche for Your HR Consultancy
Nick Poninski
Helping HR Consultants Build a ￡70K+ Business | 2x Published Author | Podcast Host | Avid Reader
Five Crucial Factors for Choosing the Right Target Market for Your HR Consultancy
If you’ve ever attended one of my webinars or seen my posts on LinkedIn, you’ll know I’m passionate about helping HR consultancies identify the right target market. It’s not just an important step—it’s the most critical part of effective marketing. Without a clear target audience, your marketing messages won’t resonate, and your efforts could end up wasted.
But here’s the thing: targeting the wrong market can be just as damaging as not targeting anyone at all. So, if you’ve been advised to target SMEs without further refinement, it’s time to rethink that strategy. Let’s explore why choosing SMEs as a blanket target might be a mistake and the five crucial factors you need to consider to find the right target market for your HR consultancy.
Why Targeting SMEs is a Mistake
Many HR consultants are told to target SMEs, but this broad approach often fails. Why? Because SMEs encompass a vast range of businesses, each with different challenges, budgets, and needs. A generic approach won’t resonate with any specific group, leading to poor results and, ultimately, frustration.
Instead, you should focus on a specific niche within the SME sector that aligns with your expertise, values, and business goals. This strategy ensures your marketing efforts are directed at the right audience—one that truly needs and values your services.
To give you an example to bring this point to life, imagine an SME healthcare provider is looking for an HR consultant and they have two options:
Which consultant do you think they are more likely to choose?
The second consultant, of course. They’ll stand out as an expert who understands the unique needs of healthcare providers, making them the obvious choice over the generalist. This example illustrates why a focused, niche approach is far more effective than a broad, generic one.
By targeting a specific niche within the SME sector, you position yourself as the go-to expert for that particular market, increasing your chances of attracting clients who need and value your expertise.The first consultant advertises themselves as a generalist HR consultant for all SMEs.
Which consultant do you think they are more likely to choose?
The second consultant, of course. They’ll stand out as an expert who understands the unique needs of healthcare providers, making them the obvious choice over the generalist. This example illustrates why a focused, niche approach is far more effective than a broad, generic one.
By targeting a specific niche within the SME sector, you position yourself as the go-to expert for that particular market, increasing your chances of attracting clients who need and value your expertise.
1. Avoid Markets in Decline
Imagine trying to sell ice cream in the middle of winter – not many people are interested. The same goes for targeting a market that’s in decline. If you focus on industries that are shrinking or losing popularity, you’ll find fewer clients, lower revenues, and increased competition.
For example, the newspaper industry has struggled as more people turn to online sources for news. If your HR consultancy targets newspapers, you might find it hard to secure clients who can afford your services. Instead, focus on industries that are thriving, like technology or healthcare. These sectors are growing, and their need for HR services is expanding, providing more opportunities for your consultancy to succeed.
2. Ensure Your Audience Is Easy to Find
Marketing to a target audience that’s hard to reach is like trying to find a needle in a haystack – time-consuming and frustrating. If your target market is difficult to identify or scattered across different platforms, your marketing efforts will likely yield poor results.
For example, if you’re targeting business owners who rarely use the internet or attend industry events, reaching them will require more effort, and you might only capture a small percentage of their attention. Instead, focus on a market that’s easier to reach, such as tech start-ups that are active on social media or regularly attend conferences. This makes your marketing more efficient and effective, leading to better results.
3. Target Clients with the Budget to Pay for Your Services
No matter how excellent your services are, if your target clients can’t afford them, your business will struggle. It’s essential to target a market that has the financial capacity to invest in your services.
For instance, early bird start-ups often operate on tight budgets and might not have the funds to pay for HR consulting, even if they see its value. On the other hand, larger, well-established companies usually have more resources and are more likely to invest in HR services. By focusing on these more financially secure clients, you increase your chances of securing contracts that sustain your business.
4. Ensure Your Expertise Matches Their Needs
Your expertise needs to align with the specific problems your target market faces. If there’s a mismatch, even the best solutions won’t attract clients. Imagine being a chef who specialises in gourmet desserts but trying to sell them to people who only want fast food. No matter how good your desserts are, they won’t be appreciated by this audience.
In the HR world, this could mean targeting small businesses that primarily need basic HR services like payroll management, while your expertise is in leadership training. In this case, your services might not be a priority for them. Instead, focus on companies that need what you offer, like mid-sized businesses that require strong leadership as they expand.
5. Choose Clients You Enjoy Working With
Finally, it’s essential to choose a target market that aligns with your interests and values. Working with clients who don’t share your values can be draining and unfulfilling, leading to burnout and reduced productivity.
For example, if you’re passionate about non-profits but choose to work with corporate clients who prioritise profit over purpose, you might find your work unfulfilling. On the other hand, working with clients who share your passion can make your job more enjoyable and meaningful. This alignment not only boosts your job satisfaction but also contributes to the long-term success of your consultancy.
Taking the Next Steps
Choosing the right target market isn’t just about making your business more profitable; it’s about creating a business that you enjoy running and that truly helps the people you’re best equipped to serve. Start by reflecting on your current target market. Are they easy to find? Do they have the budget for your services? Do their needs match your expertise? Most importantly, do you enjoy working with them?
If the answer to any of these questions is “no,” it might be time to reconsider your approach. Focus on who you can help the most, who needs what you offer, and who has the resources to invest in your services. Take your time with this process – it’s okay to make adjustments gradually.
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Once you’ve identified your ideal target market, start updating your marketing materials to speak directly to them. This might involve redoing your messaging, updating your website, or changing the platforms you use. These changes might take time and resources, but they will be worth it when you start attracting the right clients.
If you’re unsure where to start or need guidance, don’t hesitate to reach out for advice. I’m here to help you navigate these steps and ensure your HR consultancy thrives. Remember, the right target market is the foundation of a successful business, and by carefully considering these factors, you’re setting yourself up for long-term success.
TLDR?
In short, picking the right target market for your HR consultancy is like finding the perfect puzzle piece—it makes everything fit together better. When you focus on a specific group that’s growing, easy to reach, and can afford your services, you’re setting yourself up for success. Plus, by choosing clients who match your skills and values, you’ll enjoy your work more and make a bigger impact. So, take the time to choose wisely, and you’ll build a business that’s both rewarding and fun to run.
Alternatively, if you choose the wrong target audience for your HR consultancy, it can feel like trying to fit a square peg into a round hole. You might struggle to connect with clients who don’t really need your services or who can’t afford them. This can lead to frustration, wasted time, and missed opportunities. Your marketing efforts might fall flat, and you could find yourself constantly chasing after new business instead of building lasting relationships. In the end, you risk burning out and feeling like your business isn’t going anywhere.
So, take the time to choose wisely, and you’ll build a business that’s both rewarding and fun to run.
4 Ways We Can Work Together:
1 - The Marketing Made Easy for HR Consultants Podcast
This podcast gets released every Wednesday and covers everything you need to know to get a pipeline of perfect-fit, high-paying clients for your HR Consultancy.
There’ll be implementable tips and tricks and strategies - so it’s not just theory and mental titillation.
And, importantly, there’ll be a psychological and neurological aspect so you understand why this stuff works too.
If that sounds interesting then check it out here.
2 - My book, “How to Land Your Dream Client”.
This book details my signature offer and everything I do with my clients so you’ll understand everything I advise in one easy to access location.
Whatsmore, the book is laid out in 7 easy-to-follow chapters that relate to every aspect of the sales and marketing funnel:
I’m a copywriter as well as a marketing and sales consultant so be assured that the book is easy to read and totally focused on you - the target audience.
Whatsmore, whatever you need to understand and implement is easy to identify, access, and then implement so your business is never in feast or famine ever again.
If you’re ready to get your copy then click here and make your investment today.?
3 - The Power Hour
Just like Ronseal, this does exactly what it says on the tin.
Whether the problem you want to solve is something you’ve discovered on my podcast, or my book, and you just want reassurance that you're “doing it right”...
Or, you’re implementing your own solutions and they just aren’t getting the results you’re expecting…
We can sit down together and devise a plan to overcome those struggles.
You’ll come away from the session knowing exactly what needs to be done, in what order and how to do it - kinda like a HR Policy and Procedure (but less formal).
4 - My Signature Offer, “The HR Consultants’ Client Control Solution”.
In this 12-month programme we build and implement your business’ marketing and sales process, tools and strategy from start to finish so you have control of your business forever.
That means you’ll have everything you need to get every client you ever want, whenever you want, at prices you’re currently too scared to say out loud.
Whatsmore, you can get all this without expensive adverts, time-consuming social media activities, and time consuming and mind numbing networking meetings.
If that sounds interesting then register your interest here.