Why being FOCUSED is Key To Niching Down

Last week I sat on a panel in Boston for HubSpot 's INBOUND24 conference. We discussed the modern approach to profitable and efficient growth. When I came off the stage, I had about 30+ people approach me stage side, in the hallway and here on LinkedIn.

I shared my ideas around how companies can think about their pathway to profitable growth and it seemed to resonate well. In this article, I'm going to share more detail on how it all comes together. Enjoy!

The economy isn’t looking too rosy right now. While interest rates are stabilising and inflation seems to be coming under control, many companies are still left scratching their heads, unsure of what to do next. It’s a challenging time for businesses, especially SMEs, who don’t have the luxury of bloated budgets to weather the storm. So how do you make the most of what you’ve got?

One word: Focus.

Niching Down - A Game Changer

For many businesses, the instinct in uncertain times is to broaden their approach, cast a wider net, and hope they catch something. But the truth is, this kind of reactive thinking spreads your efforts too thin, leaving you competing in a crowded space where it’s hard to stand out.

Niching down, on the other hand, sharpens your strategy. It’s about knowing exactly where your products or services fit best, focusing on the areas where you can deliver the most value, and going all-in. Instead of trying to appeal to everyone, you’re positioning yourself as an expert for a specific audience. There's something I find extremely satisfying about this approach.

For SMEs, this is where your size becomes an advantage. Larger companies are often slow to pivot, bogged down by internal bureaucracy. But smaller businesses? You’ve got agility on your side. You can shift gears quickly, spot new opportunities, and move faster than your competitors.

Why Niching Down Works in Tough Markets

When things get uncertain, businesses that can adapt quickly survive. The ones that sense, seize, and reconfigure are the ones that thrive. In this case, niching down is your superpower. It allows you to focus on your core strengths, adjust your messaging, and align your resources where they can have the biggest impact. 

The sense, seize, and reconfigure approach means constantly sensing shifts in the market, seizing the opportunities that arise, and reconfiguring your strategies and resources to meet the demand. Niching down is the ultimate form of reconfiguring. You’re making sure every resource is allocated where it matters most.

Introducing the FOCUSED Framework

That’s where the FOCUSED framework comes in. This is something I developed a few years ago to help clients think through their strategy. It fits perfectly into Revenue Funnel GTM Building Blocks - specifically "How Do We Win?"

This FOCUSED framework helps B2B companies—and especially SMEs—think through the process of niching down. The acronym stands for Financials, Opportunity landscape, Competition, Users, Sales engagement, Educated market, and Data.

Here’s how it works, and how it helps you sense, seize, and reconfigure your business strategy when the economy gets more unpredictable than normal.

F - Financials  

Let’s start with the money. Understanding the financials of your target companies means knowing much more than whether they’re profitable or not. You don't need to be a qualified Accountant, but there's a few things you can think about.

- What’s their fiscal year-end?

- When is their budgeting cycle?

- Are they tightening their belts, or are they investing in growth?

- Are we a capital or operational expense and what are the tax implications?

- Who controls the purse strings, and what are their financial priorities?

Knowing this allows you to structure your pitch and value proposition just right.

O - Opportunity Landscape  

This is about figuring out whether this is an area where you can realistically generate opportunities.

- The industry may make sense is the location right?

- Do you have the resources and time to go after this area and generate enough opportunities in the required time frame?

By keeping an eye on the opportunity landscape, you can stress-test this against other variables. For example, you may have an industry that works well for you, but learn that the competition's roadmap reveals they're about to release something that will make them more competitive.

C - Competition  

Niching down doesn’t mean ignoring the competition. In fact, it means getting laser-focused on it.

- Who are your direct competitors in this space?

- What are they doing well, and where are they vulnerable?

- Are there any underserved areas where you could carve out your own space?

- Are the competition winning in more of these types of opportunities?

By studying the competition, you can reconfigure your positioning, making sure you’re standing out and addressing the pain points others are missing.

U - Users  

The people using your product or service are at the heart of niching down.

- Do you understand who they are and what their needs are?

- How easily can they adopt your solution, and what’s the potential for expanding your reach across their organisation?

- Are they early adopters, or do they need more education and support?

Understanding user behaviour helps you understand what’s going on inside the organisation and tailor your approach to increase adoption and long-term success.

S - Sales Engagement  

Sales in a niche market requires precision.  

- How long does the sales cycle typically last in this space?

- How many decision-makers are involved, and who are they?

- What’s the buying process like? Fast? Slow? Full of red tape?

Knowing the ins and outs of the buyer journey allows you to seize the moment, accelerating the process when it makes sense, and being patient when it doesn’t.

E - Educated Market  

Is the market aware of the problem you solve, or will you need to educate them first?

- Are they already trying to solve the problem you address, or are you introducing a new concept?

- Is there a way to position your solution as the obvious next step, rather than just a “better” option?

Sensing where the market is on the awareness spectrum allows you to reconfigure your messaging accordingly.

D - Data  

Finally, there’s data. It’s not just about the numbers you have—it’s about how you use them.

- What internal data do you have from similar industries or clients that shows success?

- How can you leverage external market data to make a strong case for your niche?

- How do you refine your strategy using data to continuously improve?

With data, you're looking for evidence to validate your hypothesis around your niche.

Why I Love the FOCUSED Framework

So why am I such a fan of this framework? Let me break it down:

It helps you to become a Lean, Mean, Fighting Machine: You’re streamlining your business to focus on the things you’re the absolute best at. When you’re niche, you’re not trying to please everyone. You’re a specialist—and that makes you powerful.

Scalability: Niching down doesn’t mean thinking small. In fact, it’s inherently scalable. You’re able to create one clear message that resonates deeply with a specific audience, allowing you to grow your business without the confusion of trying to be everything to everyone.

Alignment Across Teams: Niching down isn’t just a sales strategy—it’s a company-wide approach that gets marketing, sales, product, and even finance all moving in the same direction.

Efficiency and Profitability: When you focus on one thing, you get better at it. You can refine your processes, deliver better results, and do it all with less wasted time and resources.

Own Your Market: If you niche down properly, you’re not even playing in the same sandbox as your competition anymore. You’re in your own space, and that’s where the real magic happens.

Do You Need the FOCUSED Framework?

Still not sure if this is the right approach for your business? Ask yourself these questions:

- Are we struggling to stand out in a crowded market?

- Is our sales cycle inconsistent, with deals dragging on longer than expected?

- Are we trying to appeal to too many different customer types without seeing results?

- Do we feel like our messaging is too broad, lacking a clear, compelling hook?

- Are our teams misaligned, with sales, marketing, and product pulling in different directions?

If you answered "yes" to any of these, it’s time to get FOCUSED.

Niching down is not just a strategy—it’s a survival skill. The FOCUSED framework is your guide to making the most of your agility, positioning your business for long-term growth, and thriving in any market condition.

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