Niches and expansion

A Remodelcrazy.com thread, "How do I market my company?" starts off with this simple but relevant posting:

I need some advice. My busy started out as a Landscape design build company. Now we are venturing into basements and hopefully soon kitchens/bathrooms/other remodeling. My company is called Rusk Enterprises. So my name does not hold me back.

Is it going to confuse people if one week they see an advertising for a backyard, and then the next week for remodeling work? Will this hurt me or help me?

I'm a little confused on how I should proceed with this.

The advice from the marketers is: Stick to your niche. But from other remodelers, the advice is, consider adding the additional services and broadening your scope.

I observe in a posting that you need to focus within your niche, but you can, and should listen to your clients when opportunities to expand and grow the business are provided. We for example, after some ill-fated expansions (including one effort to publish a general business newspaper, a real flop), decided to focus exclusively on regional business-to-business construction newspapers.

This is still our primary business and focus, but last year, a good client suggested I publish a local magazine for renovators. I initially declined because this product would be far out of our niche and expertise, but reconsidered when I realized that the client is a centre of influence at the local Home Builders' Association, and essentially was handing me a ready-made market on a silver platter. I pulled together a joint venture team and Ottawa Renovates has become a true success.

Similarly, while our focus had been in the print media primarily, Tim Klabunde in the Washington DC area suggested last year that we could produce a magazine primarily in online format, and (in conjunction with the Design and Construction Network), we developed the Design and Construction Report.

Client-driven expansion can make a lot of sense, but you should still proceed cautiously, and be satisfied the growth is compatible with your existing niches, values, interests, and of course your existing clients. They are most likely to be your first and most valuable clients for the new service.

(Note you may need to sign into Remodelcrazy.com as a member to read the original thread. The forums are an excellent resource if you are in the remodeling or renovation business -- or are a sub contractor or supplier serving this sector.)

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Traffic, conversions and meaningful business

When someone asks me: "How can I get more traffic to my architectural, engineering or construction blog or website?", I'm tempted to throw out an answer: "Does it really matter?

Isn't what you really want are real clients who will purchase or use your products or services?"

This is especially the case if you are following the Marketing 101 principal and focusing on a specific niche. Since niches are either generally geographically or specialty focused and the Internet covers the whole world, you probably don't want "everyone" visiting your site and responding to you.

But the word "niche" also suggests quality is much more important than quantity -- you want to be top place within your community/space but ideally (from a marketing perspective) want to be nearly invisible to everyone else.

How important is this specialization?

Say you are a "management consultant". You might be great, and capable of working in all industries and sectors, for businesses of many different sizes. And theoretically, your world is the universe, since you can provide consulting services over the phone and by video link anywhere, any time.

But how are you (a) going to get any attention out of the clutter and crowd and (b) have enough credibility to truly be successful in presenting your generalist services to people who don't already know you.

Now, when you say you are a "management consultant to general contractors which are family owned businesses in North America", you have a better chance of success -- but even better might be "Safety consultant to contractors in Toronto, Ontario."

Next, once you have your niche, you need to go the next step, and build your reputation.

Here is where content really works wonders. I share several others' belief that you lose very little by being totally open about your ideas and insights, without worrying about giving away your "secrets". (Obviously I'm not talking about processes or technologies you are about to patent!) Seth Holdren makes the reasoning clear in his blog.

By posting articles, insights, and information on your website, starting a blog and updating it with content, and generally sharing your soul, you'll attain some authority and reputation, and begin "owning" your niche. (And yes, your search engine rankings will rise, and this will increase qualified traffic further.)

There is a final element to this problem, however, and frankly I haven't solved it yet. Say you have a niche, obtain lots of traffic, and can build a list of great names of potential clients. How do you convert these initial contacts, inquiries and interest into real business?

Sure, this blog has generated some business for my companies, but the revenue from it and the related newsletter tracks to less than 10 oer cent of our total annual earnings. (This is helpful, but can we improve the results?)

More challenging, of 1,000 people who put their names down on the list for more information or the free Construction Marketing Ideas newsletter, only one or two ultimately buy anything from us.

Of course, part of the reason is that I may have found a niche, but don't have the product or service its members require (except if you are at present in Ontario or North Carolina).

Does "Construction Marketing" require hands-on locally based consultations, or advertising in relevant media that we don't provide?

Do we have the credibility and proof that we can deliver more expensive services, for a fee, because of this blog?

Whenever I've overtly tried to sell anything through this blog or the newsletter, I usually achieve nothing but negative backlash.

Do you have ideas or suggestions of your own to solve this challenge?

Maybe you can help me solve this marketing puzzle.

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