In my role as a business coach to many a successful mortgage brokerage, I’m always asking: “What’s your niche?”
I’m not saying that there’s not a market for ‘vanilla’ mortgages – there is. Probably 80% of brokers play in that arena, which is fine. But how do you market yourself in this arena with a message that would resonate with those you’re trying to reach?
What are you offering that would make your ‘vanilla’ customer beat a path to your door?
Don’t you dare say, ‘quality of service’, as that much-maligned statement is not only touted by your competitors but cannot be experienced until after purchase, so offers no real value at the point of sale.
Finding your USP
What you need is a niche. You can have more than one. All you need is a landing page for each, proof that you are an authority in that area and a bit of a marketing budget to drive web traffic.
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Just imagine how you would stand out when the self-employed plumber with only two years of trading history arrives on your landing page and is not greeted by:
We offer:
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Residential purchases and remortgages
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Buy-to-let mortgages
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Self-employed mortgages
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Commercial mortgages
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Bridging loans
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Loans for people with…
The list goes on and resonates with no one. Instead, they are greeted with:
“Your business success shouldn’t wait three years for a home.
“We specialise in flexible mortgages for entrepreneurs like you who have a short trading history – we know your business potential matters more than your trading years when it comes to getting your next mortgage.
“If you were that self-employed plumber, who would you consider to be the expert you trust with your next mortgage application?”
Tapping into a viable market
Oh yes, Paul, it’s a great idea to find a niche, but why would I limit my market?
As of 2023, the total number of private sector businesses in the UK was approximately five-and-a-half million. Here’s the detailed breakdown by business size:
- No employees (sole traders/freelancers): 4,038,000 (73.4%). These are typically self-employed individuals, freelancers, and micro-businesses
- 1-10 employees: 1,124,000 (20.4%) – small businesses and start-ups
- 11-20 employees: 146,000 (2.6%) – growing small businesses
- 21-50 employees: 86,000 (1.6%) – medium-sized businesses
- 51-250 employees: 44,000 (0.8%) – larger medium-sized businesses
- 250-plus employees: 8,000 (0.1%) – large enterprises
- Total registered businesses: 5,446,000 (100%)
Source: Department for Business and Trade – Business Population
Estimates 2024
There were some key observations that shocked me, such as the fact that over 93% of UK businesses have fewer than 10 employees, while large enterprises (250-plus employees) make up only 0.1% of businesses.
If your niche was business owners with up to 10 employees, your target market number is over five million. That’s a niche that is an inch wide and a mile deep.
As for this tactic restricting your appeal, Southwest Airlines famously changed its marketing strategy to appeal to business travellers. This initially garnered severe opposition from within, with the feeling that any increase in business traveller numbers would be far offset by the loss of holiday flyers.
In reality, the opposite happened. Business bookings increased through the new targeted marketing, and holiday traveller numbers also increased, buoyed by the idea that an airline catering to the business user would be far more efficient and reliable.
In this world where artificial intelligence (AI) is ever encroaching into our workplace, now more than ever, the need to specialise is required. Choose your field of expertise and build your reputation around it.
Your marketing becomes clearer, you understand the needs and desires of your ideal client and you’ll probably secure your long-term future.
