5 Simple Questions to Help You Identify the Right Niche for Your HR Consultancy

In this week's podcast, you’ll discover:

• The surprising reason your target market might be your biggest problem.
• How choosing the wrong audience could be sabotaging your growth.
• Simple steps to pinpoint the right market for explosive success.
• The hidden opportunities you’re missing out on by not specialising.
• Concrete strategies to attract clients who are eager to pay and stay.

So stop spinning your wheels and start getting more and better clients by tuning in now! 🎧🔥

00:00 - Introduction: The importance of choosing the right target audience for your HR consultancy.

00:47 - Why targeting SMEs might be a mistake: A brief overview of common misconceptions.

03:18 - What is a target market? Definition and significance in HR consultancy.

05:20 - Factor 1: Avoiding markets in decline—why targeting a shrinking market can be disastrous.

07:42 - Factor 2: Ensuring your audience is accessible—how hard-to-reach markets can waste your resources.

09:40 - Factor 3: The importance of targeting clients with the budget to pay for your services.

12:00 - Factor 4: Aligning your expertise with client needs—why mismatches can hurt your business.

15:46 - Factor 5: Working with clients you enjoy—how alignment with your values enhances job satisfaction and success.

18:21 - What to do now: Practical steps for redefining your target market and refining your marketing strategy.

20:50 - Seeking support: How to get help if you're unsure about implementing these changes.

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1 - Take this free quiz to understand why you aren't getting the leads and clients you need.

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Transcript

00:00 If you've ever attended one of my webinars or seen one of my posts on LinkedIn, you know I'm passionate about the importance of choosing the right target audience for your HR consultancy.
00:11 Because as far as I'm concerned, it's the most crucial step for effective marketing. After all, if you don't have a target audience, then how can you come?
00:19 You confidently send someone some marketing messages saying that you can solve their problems. Those marketing messages will speak to anyone and everyone, rather than the specific recipient you've contacted.
00:31 Equally, if you have the wrong target market, then you're going to go out of business quickly too. And from a marketing perspective, let me tell you, SME's are So if that's your target advice, then listen up because someone somewhere has given you some bad advice.
00:47 So whether you've heard this before or this is new to you, stay tuned. I'm going to dive deeper into why targeting SME's is a mistake.
00:54 And then I'm going to share the five crucial factors to consider to find the right target market for your HR client.
01:01 That way you can confidently market your services and share messages that business owners actually respond to. That way you'll get more leads, more clients, more sales and more profits.
01:11 And then that will take your business to profits of 80k and above.
01:15 This is the marketing made easy for HR consultants podcast, a show to help independent HR consultants get a pipeline of perfect fit, high pain clients without expensive at this.
01:28 Time consuming social mediativities or energy. I'm your host, Mick Peninsky or for a pousalanger dream find a book which explains everything you need to know to get every sale and client you ever want.
01:43 And if that sounds interesting, make sure to grab your coffee from the influencer. That being said, let's get into today's show.
01:53 Hello there and welcome back to another episode of Marketing Made Easy for HR Consultants with me, Nick Paninski. It's great to have you with me as we get to the end of August.
02:04 Where is 2024 going? It only feels like yesterday I was in Brazil. Anyway, this week I've onboarded another new client as we get to work.
02:13 Work on her target market, start building her a funnel that goes from lead magnet download right through to an email sequence that pushes for a sale.
02:21 Exciting stuff. I also ran a sales call on bank holiday Monday where I took another client through my sales call presentation and she told me that she needed to take some time to think about whether to invest with me.
02:32 Now I didn't try and pressure her into making a sale there and then, that's not my style, but I did ensure she had all the relevant information she needed before she left the call.
02:42 And then I scheduled the next call to make sure we finished the process and I didn't get ghosted. Other than that, I've been looking over Jeff Walker's launch product as I'm about to start my own mastermind of HR content.
03:03 I'm very excited about starting this and if it's something you want to hear more about, then feel free to DM me on LinkedIn.
03:10 Either way, that's a story for another day. Today we're talking HR. We're talking about identifying the target market that's right for you.
03:18 So firstly, let's kick things off with a definition. A target market is a specific group of people or businesses who you decide to help or that all the f***s all others.
03:27 And everything in your marketing becomes focused on them. That way, when they find you, they're more interested in working with you.
03:34 Because all your infrastructure and paraffin earlier is created with them in mind. And that means they'll identify with your messages and your paraffin earlier and they'll be more likely to buy your services.
03:45 Overall, getting this right. So need is key to making sure you're a marketing is effective and you might business grows.
03:53 give you an example to bring this to life, let's imagine you're an SME healthcare provider. Which HR consultant do you choose to work with?
04:02 The HR consultant who says- is the work with SMEs. The HR consultant whose website is full of bland information about generic HR services.
04:11 And the HR consultant who basically says they work with any SME. Or the other HR consultant. The HR consultant who says they work with SME healthcare providers.
04:19 The HR consultant I so welcome who's blogs and social media posts. So I tell it to SME healthcare providers. And how health HR relates to the issues that they're facing.
04:32 The HR consultant whose website is full of healthcare related images. And the leaflet they send out in the post also has relevant SME healthcare images and literature.
04:42 No brain alright. It's gonna be the headchild consultant who works with SME Healthcare Consultants. And easier marketing, that's just the tip of the iceberg when it comes to the benefits of choosing a target market and serving.
04:56 There's also the ability to charge higher prices because you're a specialist, not a generalist. And then the fact that people will be able to refer you easily.
05:04 easier because they know who you work with. Anyway, I've worked lyrical about the benefits of choosing a target market before, so I'll not rehash all that.
05:13 But if you are curious, then go and check out the relevant podcast. With all that being said, you might be wondering at which markets to choose.
05:20 As such, here are the 5 major considerations consideration. To think about when choosing your target market. I'll explain why each one is so important and what can go wrong if you ignore them.
05:33 so the first factor to consider when you're choosing your target market is to not choose a market in free form.
05:40 Obviously choosing a market that's in decline or losing popularity that is a recipe for disaster. It might seem obvious but it's very crucial to understand this.
05:49 It's very crucial when you're considering a target market and that's why I'm sharing it first. Targeting a dying market is like trying to sell ice cream in the middle of winter.
05:58 People just aren't buying and your sales will inevitably suffer. So if you choose a market that's in trouble, like a business sector that's shrinking, you'll find fewer opportunities to secure clients.
06:11 You've got to make efforts, your marketing efforts, they won't pay off. And that's going to lead to a hell of a lot of wasted time, money and energy.
06:18 For example, think about the newspaper industry. As more people turn to online sources for news, newspapers have struggled to maintain revenue and profitability.
06:28 If you were to target newspapers for your HR services, you'd be focusing on a market that's not only shrinking, but it's also under intense pressure to cut costs.
06:36 And this could mean fewer clients, lower revenues, and much more competition for the limited opportunities that do exist. So, if you ignore this factor though, that can lead to severe consequences.
06:49 If you invest time and resources in a declining market, your business might struggle to grow. You could end up with fewer clients, lower income, and tough competition, all while trying to survive in a shrinking space.
07:02 This is going to leave your business vulnerable, with reduced profitability, and a harder path to success. On the flip side, focusing on industries that are thriving, that can open up opportunities.
07:12 Take the technology or the healthcare sectors, for example. Both are expanding rapidly, with increased demand for HR services, as these industries grow and evolve.
07:23 So by targeting a market that's on the rise, you'll have access to more potential clients, higher revenue opportunities, and a stronger foundation for long-term growth.
07:33 And that means your marketing efforts are more likely to pay off, leading to sustainable business growth and a more secure future for your HR consultancy.
07:42 The next factor to consider is that the audience must be easy to find. So that means, you know, you've got to be able to find them and reach them.
07:50 Imagine trying to find a needle in a haystack. It's incredibly difficult, takes a lot of effort. And the same goes for your target market.
07:56 If they're scattered or hard to identify, your marketing efforts will become a costly and And this could mean pouring resources into marketing campaigns that don't deliver results.
08:14 Simply because you are not reaching the right people. It's like shouting into a void. No matter how loud you are, no one is listening.
08:21 For example, let's say you are targeting a very niche group of business owners who rarely use the internet or attend industry events.
08:28 Reaching them would require a lot of effort. And even then, you might only capture the attention of a small percentage of the audience.
08:35 This makes your marketing less efficient and less effective. On the other hand, choosing a target market that's easy to find, such as tech start-ups that actively engage on social media or attend specific conferences, that means you can focus your efforts more effectively.
08:51 You'll know exactly where to reach them, whether through online platforms, industry events, or targeted advertising. That being said, if you ignore this, and you target a whole hard-to-reach audience, your marketing campaigns could fall flat.
09:06 You might spend a lot on ads or content that never reaches the right eyes. That results in poor engagement, low conversion rates, and wasted resources.
09:14 And this could ultimately slow down your business growth and leaving you to struggle to attract clients and, yeah, contemplating a return on to the office to the nine-to-five.
09:24 On the flip side, when you target an audience that's easy to reach, your marketing becomes more efficient, more impactful, you can allocate your budget more wisely, focus on the right channels, and you will see better results in terms of leads, client acquisition, and overall business growth.
09:40 The third factor to consider when choosing a target market is that they must have cash. This target market, whoever it is that you choose that you want to work with, they need to have the money to spend on your services.
09:52 If they don't have any cash then you could have the best solution in the world but it won't matter because they can't afford it.
09:57 It'd be like trying to sell gold. They simply can't buy what you're selling no matter how great your product is.
10:04 So if you're a target client, if the people that you choose to work with, if they don't have the budget for your services, you won't get paid.
10:12 That means that your business is going to suffer. This is going to lead to serious financial problems, making it difficult to cover your expenses.
10:19 or even keep your consultancy afloat. So it's crucial to ensure that your market you're targeting has the financial capacity to afford your services, or you risk putting in a lot of work without seeing any return.
10:33 an example, let's look at start-ups. Start-ups often have tight budgets, with every dollar and pound carefully allocated. So even if they recognise the value of HR consulting, they might not have the funds to invest in it.
10:46 On the other hand, larger, more established companies, they usually have more financial resources. And they're more likely to invest in HR services that support their growth and operations.
10:56 So consider targeting more well-funded companies to increase your chances of securing clients who can actually pay for your expertise. That being said, if you ignore this factor, and you focus on clients who can't afford your services, you're setting yourself up for disaster.
11:14 You might spend a lot of time pitching your services, only to find that potential clients love what you offer, but simply can't pay for it.
11:21 And this can lead to financial strain, making it harder to sustain and grow your business. Over time, that's going to result in stalled growth, increased stress, and the potential risk of your business going On the flip side, by focusing on those well-funded businesses or sectors that ensure that your
11:40 services are not only valued, but also compensated appropriately. That leads to more stable revenue streams, healthier cash flow, financial security for you and your consultancy.
11:50 And when you're working on So, want to work with clients who have the budget to invest in your services, you can focus on delivering high quality work, knowing that you'll be paid fairly for your efforts.
12:00 There's financial stability, that allows you to reinvest in your business, explore new opportunities, and achieve long term growth. For me, my friend Aaron found this factor out to his cost.
12:11 I'd been on at him for months. I'd months about finding a target market and he said he was going to target the green sector.
12:17 You know, eventually he decided he would listen to me and find a target audience. So yeah, he targeted the green sector, energy and environmental businesses.
12:27 Now, I'm not his business coach, he's not my client, so it didn't occur to me to tell him about which markets to choose.
12:34 I just left him to it. You know, in retrospect, I guess I was being a bad friend. But hey-ho, I've got my own shit going on, right?
12:43 Fast forward 5 months and he's discovered the green sector doesn't have any money to pay for marketing activity. So he's wasted his time trying to save an audience which can't pay his wages.
12:52 That made me really means the work that he's done on his website, the marketing paraphernalia he's created, the changes to his LinkedIn, the marketing campaigns he's enacted, they've all fallen flat on their face.
13:04 That means he's wasted a lot of time, money and effort. And now, now he's got to go out and find a new audience and he has to do all this again.
13:12 So learn from Adam. Aaron's mistake, don't choose a market which can't afford to pay you what you want to charge.
13:18 The fourth factor to consider when deciding to choose your target market is that you must be able to solve their problems.
13:26 Sounds a bit silly but let me explain. It's crucial that you can solve the specific problems that your target market faces.
13:34 Think of it like being a chef who specialises in gourmet desserts. But if you are trying to serve these desserts to people who only want fast food, they won't appreciate what you offer no matter how delicious these desserts are.
13:47 Your expertise needs to align with what your target market actually needs and values or they won't see the benefit of working with you.
13:55 if you can't solve the specific problems, that your clients have, they'll go elsewhere for help. People want solutions that fit their needs.
14:02 And if you offer something different, it's going to be hard to attract and keep clients. And this mismatch, that's going to make it tough to build a strong business, and it could lead to a massive waste of time, effort and opportunities.
14:14 Now let's give you an example in the HR world. Let's say you specialize in leadership training, but you're targeting small businesses that are more focused on basic HR tasks like payroll and employment law complaints.
14:27 this case, there's a clear mismatch. These businesses may not prioritize leadership development, so they're unlikely to invest in you. However, if you focus, say for example, on mid-sized companies or growing startups that are expanding their teams and may need strong leadership, your expertise will 
14:43 be in high demand, and your services will be much more valuable to them. you ignore this though, you will face serious challenges.
14:51 If your skills don't match the market needs, people might not see the value in your services, or they could overlook you altogether.
14:58 You'll be trying to sell them a solution they just don't want. This is going to lead to potential clients being lost, unhappy customers, and potentially damage to your reputation.
15:08 So yeah, overall, you might struggle to find and keep clients. That's going to be going make your business unstable and put you at financial risk.
15:16 But, on the flip side, when your skills are a perfect match for your clients' needs, your services become highly valuable.
15:23 Clients will appreciate the customized solutions you offer, leading to stronger relationships, happier customers. And this alignment, that helps you attract the right clients.
15:32 And it ensures that you work is effective and appreciated. And as a result, you'll enjoy better client retention, positive word of mouth, and a growing reputation in your field.
15:42 All of which contribute to the long-term success and stability of your consultancy.
15:46 The fifth and final factor to consider when choosing a target market is that they must be people with whom you want to do business.
15:54 Effectively, you've got to consider whether or not you're actually going to enjoy working with your target audience. If you choose clients or markets that don't align with your interests or your values, your work can become very draining and very unfulfilling.
16:09 So working with clients who don't share your values or your interests, that can lead to low job satisfaction, strained relationships and reduced productivity.
16:18 Imagine spending your days work, doing work that doesn't excite you or dealing with clients who don't appreciate your approach. You have very different values from them.
16:27 Over time, that's going to lead to burnout, a lack of motivation and even a decline in the quality of your work.
16:33 If you're not passionate about the clients that you're serving, it's hard to stay motivated and deliver your best. Let's say that you're deeply passionate about working with non-profits because you care about their mission.
16:44 And you want to make a positive impact. But you choose, for some reason, to work with corporate clients who prioritise profit over purpose.
16:53 That's not going to align with your values. You might find the work unfulfilling. That misalignment, that's going to make you feel like your job is going to be more of a chore than a calling.
17:03 On the other hand, focus on those non-profits. That's going to ensure that your work is not only rewarding, but it also aligns with your personal beliefs.
17:10 That's going to make your job more enjoyable and meaningful. if you ignore this factor, that can lead to significant personal and professional consequences.
17:20 Because if you target clients or marketers, There were some inquiries in that I you, as they your career has evolved. stuck and unfulfilled on the flip side when you work with clients you're passionate about your enthusiasm your satisfaction that naturally increases and this positive energy translates
17:54 into better client relationships more fulfilling work and a higher overall success rate when you enjoy what you do and who you do it for it is shows in your work i'm sure you'll agree you'll be more motivated to go the extra mile deliver outstanding results and build lasting relationships with your clients
18:11 this alignment not only boosts your job satisfaction but it also contributes to the long-term success and stability of your HR consultancy
18:21 Okay, so those are the five factors to consider when it comes to deciding a target market. So what do you do now?
18:27 Okay, well, I get it. This can feel like a lot to take in. You might be thinking, where do I even start?
18:34 You might be feeling hesitant about making changes in your business. But remember, every successful business, it begins with the right steps, and it's okay to take this one step at a time.
18:43 It's okay to make mistakes as you go through the process. The first step, though, that's starting with some reflection. Take a moment to reflect on your current target market.
18:53 Ask yourself, are they easy to find? Do they have the budget for your services? Do their needs match your expertise?
19:00 Most importantly, do you enjoy working with them? If the answer to any of these is no, it's time to reconsider your approach.
19:09 think about who you can help the most. Who needs what you offer and has the resources to invest in it?
19:16 Don't rush this process. Take your time to really understand who your ideal clients are. And then get to work on writing down the characteristics of your perfect client, including the industry they're in, the challenges they face and the values that they hold.
19:29 If you want more detail around writing out your target market, defining that client avatar, then grab a copy of my book.
19:35 This podcast is too short to go into more detail other than to say, you need an avatar, you need someone in mind when you're creating marketing paraphernalia and marketing your services.
19:47 don't feel like you have to overhaul everything overnight. Start by making small adjustments to your marketing. Maybe tweak the language on your website to better speak to your ideal audience.
19:57 Or start targeting your networking efforts towards industries that are growing and in need of your expertise. Small strategic changes can lead to significant improvements over time.
20:07 The best thing I would say is to devote an hour a day to this. Schedule some time in your diary to do it and get it done.
20:15 Next it's time to rebuild your marketing infrastructure. So once you've clearly done it. Look at your website, your social media, your email campaigns, and any other marketing materials that you've got.
20:27 Do they speak directly to your new target market? If not, it's time to update them. This might mean redoing your messaging, updating your website, or even changing the platforms that you use to reach your audience.
20:40 It might be costly, it might take time, but it will be worth it once you start getting leads, once you start getting clients because they look at what you've got and they say, that's the person for me.
20:50 They're speaking to me about the problems I have, they understand me, I need their help. seek support if you need it.
20:58 If you're feeling unsure about where to start or how to make these changes, then consider getting in touch with me on LinkedIn for some personal advice on, or guidance on refining your strategy.
21:07 I'm here to help you navigate these steps and ensure your HR consultancy thrives. I know this is a big step, you don't have to do this alone if you don't want to.
21:15 Overall, remember to remember, refining your target market and adjusting your marketing efforts 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.
21:29 So take it one step at a time and you will see the benefits unfold. In summary, paying close attention to these five key considerations when you've listed.
21:38 It's not just advisable, it's essential for the success of your HR consultancy and for your personal development. So avoid markets in decline so that you aren't wasting time and resources on clients who won't sustain your business.
21:51 Ensure that your audience is accessible so that your marketing efforts aren't like finding a needle in a haystack. Target clients who have the budget to budget so that you can get paid what you want to charge.
22:00 Make sure your expertise matches their needs so that your services are valued and your clients are satisfied. And finally, choose clients you enjoy working with so that your work remains fulfilling and doesn't lead to burnout.
22:14 these factors can result in wasted time. Missed opportunities, financial difficulties, and even a lack of job satisfaction. But by thoroughly considering each one, you're going to set yourself up for a thriving HR consultancy where your marketing is effective and your business grows steadily.
22:30 And then your work is going to be something you look forward to every day. Anyway, I hope that this helps and as I said earlier, if you need further detail around this, then grab a copy of my book from my website or DM me on LinkedIn.
22:43 Either way, you know what time it is. It's time to get marketing. Because without marketing, there's no sales. And without sales, there's no business.
22:51 So get marketing.
22:54 Hey there, and thanks for listening to the Marketing Made Easy for HR Consultants podcast. If you've enjoyed the show, then please consider taking a moment to help us grow by sharing the episode with a friend or colleague.
23:08 Leave it a positive review on Podchaser.com and make sure to hit subscribe so you don't miss out on any of the upcoming episodes.
23:16 I've been your host, Nick Finenski, and if you have any questions or want to know more about today's topic, then reach out to me on LinkedIn.
23:24 I'd be delighted to hear from you. See you next time.