Now, some entrepreneurs might think diversifying is a good idea. After all, this reduces the amount of risk that you're exposed to. But let me tell you one thing: If you are not comfortable with taking risks, entrepreneurship is probably not for you.
The main problem with diversifying is that some entrepreneurs end up taking a shotgun approach, trying to sell their products or services to several different audiences.
Here's why this is an issue:
- First, you'll attract loads of customers who are insanely demanding yet cheap with their cash. Trust me, these guys are the absolute worst.
- Next, it's hard to persuade customers to buy your product or service, especially when your generic message doesn't fully resonate with them.
- Last, it's also tough for your team to deliver an outstanding product or service when they are trying to please more than one customer.
For these reasons, diversifying isn't the strategy for me.
Instead, I identify my ideal clients and treat them as my north star. I put all my eggs into their basket, and focus on filling up this one basket. If you also believe that focusing on your ideal clients is the way to go, here's a simple three-step process you can use to get the most out of your clients:
1. Describe your ideal client.
The better you understand your ideal client, the easier it is to serve them well. So ask yourself the following questions:
- How much does your ideal client earn?
- How quickly does your ideal client make decisions?
- Does your ideal client care more about price, quality, or speed?
- What are your ideal client's deal breakers?
Personally, I know my ideal client values quality above anything else. That's why I religiously track the quality of my service using key metrics.
2. Craft your message to this client.
The next step is to craft a message that resonates 100 percent with your client. To do this, you need to understand two things:
- What motivates them to spend on your service?
- What is the pain point they're avoiding (no more bugs in the house) or the pleasure they're seeking (clean pool to swim in) by engaging your service?
With my company, A1 Garage, my ideal client's house is an extension of their personality. They don't just want their garage doors to work properly--they also need them to look nice. Once I understood that, it was easy to dial in the right message.
3. Figure out where this client hangs out.
Doing this is easy. Just talk to your clients and get to know them better. How did they stumble upon your business? Where do they do their research? Which social media sites do they use?
Once you get these answers, it'll be easy for you to decide where to spend your marketing dollars.
Look, I know that conventional wisdom says you should diversify your business and not put your eggs into a single basket. But take it from someone who's been there, done that: All this does is distract you and make your business less efficient.
Instead of spreading yourself thin in too many areas, put all your eggs in one basket and focus on serving your ideal customer well. Once you do that, everything else will fall into place.