When you start a staffing firm, you might be tempted to be generalized in nature in order to attract the widest candidate and client base. If you’re open to filling all types of positions in any industry, then your revenue is bound to increase, right? Wrong.
If you’re going to start a staffing firm, then choosing a niche is your best bet. A niche market is a subset of a larger market—a highly specialized market.
Here are some reasons why.
1. Cut Down on the Competition
If you start a generalized firm, then you’re essentially in competition with all other generalized agencies as well as all niche agencies. And considering the staffing industry is growing at a rapid rate, new competitors are constantly coming into the market. This is going to make it a lot more difficult for you to recruit top talent and gain big clients.
Starting a niche staffing firm on the other hand can significantly cut down on the competition.
2. Targeted Marketing
Marketing is more effective when you can zero in on a specific audience or buyer persona. That’s very difficult to do if you’re marketing to a wide variety of clients and candidates. With a niche, you’ll know exactly who your buyer personas are so you’ll be able to create highly targeted campaigns that resonate with them in order to see better results.
3. Save on Costs
Choosing a niche for your staffing firm can also be more cost-effective. You’ll be able to reduce your advertising and marketing costs by only having to target a very selected demographic, rather than have to pay more to advertise to all candidates and all companies in your area. You’ll be able to reach a larger percentage of people who are actually interested in your services, but at a lower cost.
4. Better Business Strategy
Your business strategy guides all of your actions and decisions. The more specific and detailed the business strategy, the better you can operate your staffing firm. When you choose a niche, you’ll know exactly who your target audience is, and therefore, you’ll be able to identify their unique needs, tailor your services exactly in the right way, and communicate your value proposition more efficiently. You’ll have one singular focus that you’ll be able to dedicate your time, resources, and money to.
5. Brand Loyalty
Long-term clients are necessary for the financial viability of your business. Choosing a niche makes it easier for you to gain brand loyalty and build deeper relationships with your client companies because your services will be difficult to find elsewhere.
6. Consistent Feedback
Niche companies are more likely to receive consistent feedback from their homogeneous markets. This makes it easier to manage public relations, change policies, and produce or eliminate services based on customers’ opinions, needs, and demands. Generalized firms, on the other hand, have more difficulty making changes to address customer needs because doing so will likely decrease the satisfaction of their other audiences.
7. Better Value
The most important reason to choose a niche for your staffing firm, though, is to be able to provide better value to your customers. Niche agencies can position themselves as leaders and experts in their fields. When they focus on doing one thing very well instead of many things only adequately, they can attract clients who are looking for not only hiring expertise, but also industry expertise, insights, and advice.
Clients will want to work with you because your recruiters will have specialized skill sets, understand the roles and responsibilities of placements to be filled, and know where and how to find quality applicants. Niche firms have better connections to job seekers, provide a quicker turnaround because of their larger specialized talent pools, understand what it takes to succeed in the industry, and best of all, candidates want to work with them to find jobs, too.