David A. Fields Consulting Group You’ve undoubtedly received plenty of advice to position your consulting firm in a narrow niche. Of course, you’ve also been advised to coat your daily diet with chocolate. (Maybe the latter advice was only from me, but it still counts.)
Niche, chocolate. Is either one really necessary?
Absolutely! Let’s look at some examples, a few benefits, and a very rough rule of thumb for consulting firm niches.
Examples of Niche vs. No Niche
Two small consulting firms I work with in Europe offer similar solutions to an operational problem. One firm proudly announces their experience across a wide range of industries. They consistently knock their heads against a $1.5m/year annual revenue ceiling.
The other firm serves a single industry. Their revenue is $15m/year.
10x revenue because of a niche? Yes.
Countless consulting firms run strategy projects. The vast majority of tiny and solo strategy consultants offer guidance to any prospect that meets their sole criteria: signing authority.
Most of those strategy consulting practices earn (well) under $500k per partner.
In contrast, one of my clients solves only one piece of the strategy puzzle for a single industry. Their revenues are skyrocketing and the two-partner firm will crest $3.0m this year.
In further contrast, another consulting firm I work with offers services only to a sub-segment of the healthcare industry, and their revenue is topping $100m this year.
The consulting firm I cut my teeth in served the narrow intersection of retailers and manufacturers, and regularly generated over $1m per consultant. (Much more per partner.)
One final example is my own firm. There are many advisors to “professional services” firms, and that may strike you as a narrow target.
However, my team works exclusively with consulting firms, and my personal experience is that our precise focus allows us to deliver superior value, win clients more easily, and enjoy greater financial performance compared to firms targeting professional services in general.
Benefits of a Narrow Niche
Memorability. Your consulting firm is easier to recall if you’re the one that serves Ecuadorian chocolate factories than if you’re one of a zillion consultants who “help companies with operations.”
Relevance. Your consulting firm’s work, IP, and marketing efforts all feel directly applicable to your target when they address your target’s problems precisely, illustrated with close-in examples.
Credibility. Prospective consulting clients trust you can help them, when they see you’ve helped others who look exactly like them in exactly the same situation. In most clients’ eyes, the closer your consulting firm’s experience is to their own situation, the higher your credibility.
Referrability. Because you’re memorable, relevant and credible, others will sell on your behalf. The consulting firms I work with who specialize in a narrow niche obtain far more referrals and inbound leads than those with diffuse targets.
Broad Opportunities: Ironically, a client who knows you focus in a certain area is more likely to ask, “Could you also…?” Once you’ve established trust with a client, expanding your work is natural and seamless.
Think of your market as a hollow wall. You need a sharp point to penetrate the resistance.
A Client’s View of Niches
As I sat in the sun-drenched Sonoma Valley this past weekend, a Silicon Valley tycoon (on his 7th company!) and I struck up a conversation. When I mentioned that I advise consulting firms, he said,
“I hope the very first piece of advice you give them is to focus in on a narrow market. Consulting firms approach me every day saying they can do everything, and I can’t remember one of them.”
A Rule of Thumb for Consulting Firm Niches
Divide your consulting firm’s total revenue by the total number of industries you market to and problems you represent yourself as solving.
Is your revenue per target under $3m? If so, you’ll benefit from narrowing your niche.
You could easily win much more business than that in the right combination of industry and problem. However, $3m per niche is a good yardstick for measuring your consulting firm’s performance.
What has your experience (or challenge) been in finding a niche for your consulting firm?
Text and images are © 2026 David A. Fields, all rights reserved.
Excellent post David. I’m in the process of launching a solo consulting firm which specializes in restaurant management operations. Having excelled in the operations side of management with some of the largest casual dining brands in the world has inspired me to focus on boosting the profitability of prospective restauranteurs. I’ve narrowed my market to a segment that I can be successful in. I don’t have any clients yet as I’m focussing on marketing my value proposition. What in your opinion is the most efficient use of my time that will lead to my first client?
Good for you for launching a consulting practice, Shawn. I’ve worked with other folks who target restaurant operations, so I know there’s money to be found there.
In terms of where to spend your time: pick up the phone and talk to everyone you know. That will give you the highest likelihood of surfacing a project in the short term. Also consider taking on subcontracting work and/or pro-bono work (even for a for-profit client) to get yourself started. If you haven’t read The Irresistible Consultant’s Guide to Winning Clients, then pick it up–you’ll find a lot of very specific direction in there.
Good luck with the launch of your practice, and keep me apprised of your progress!
Spot on David (as usual)! I love the use of the drywall expansion anchor as a visual metaphor!
I wish I could say I used this advice in my consulting career. In fact, I did the opposite. I tried to address every opportunity. I was a consulting generalist for a while.
I quickly evolved to the business I run today. My NameFlash(TM) brand name development service is a perfect niche opportunity. Naming is a very specialized skill, and companies cannot afford to keep a specialist like me on the payroll. So it is the perfect niche business. And like that drywall anchor, once inside the business I find many more opportunities to help, particularly in market research and consumer understanding.
Keep up the great work David! I always learn something from your emails!
Mark, I’m a big fan of your service and you’re the perfect example of a solving a highly-specialized problem: “We need a name for our product.”
As you’ve pointed out, once you’ve built a trusting relationship with the client, opportunities abound. Thank you for highlighting the benefits of a narrow niche, Mark.
David, thanks for sharing this article. I’ve always dreamed of running my own consultancy and finally made the leap this summer. Your book was a big help in the transition! I’m focusing on helping B2B companies with messaging and positioning. My fishing line is “I help B2B companies stand out in crowded markets.” Any advice on how to improve, and do you think my niche is narrow enough? Thanks for your help, your work has been tremendously valuable to me.
Congratulations to the leap into consulting, John. You’re at the start of an exciting adventure.
Both parts of your Fishing Line–the target definition and the problem/aspiration)– are very, very broad. “B2B companies” includes the vast majority of corporations.
You’ll find it much easier to win business is you narrow your focus considerably. What particular type of B2B companies? Can you pick an industry? A sub-segment of that industry?
Keep working at it. Developing a powerful Fishing Line is surprisingly difficult, and you’ve already taken a terrific first step. Let me know how you progress, John.
Thanks for the response, David! I’ll keep working on it and get back to you.
OK, David, if you’re up for it, I have a some new ideas for your feedback. I’m curious if you think any of these shows promise. Thanks!
1) I work with leaders of B2B tech startups who want to attract the best customers, employees, and investors.
2) I work with leaders of B2B tech startups who want more attention from the right people.
3) I work with leaders of B2B tech startups who want clarity on their strategic messaging.
John, as you’re experiencing, developing a strong Fishing Line takes more work and iterations than it might appear on the surface.
You’re definitely making headway. B2B tech startups is a solid, target definition (though not always a well-funded group). As to the problem definition, you’re getting closer there, too. A bit of research with your prospects will tell you whether you’re hitting a precise, easily-understood problem that’s urgent, pervasive, and expensive to leave unsolved.
Keep at it and let me know your progress!
Great article and a lot of value provided in the comments too! I’ve struggled a bit coming from a sales & marketing background. I’ve been thinking the problem I solved was more the niche rather than the “who” of the industry. I solve various leadership challenges for organizations and that’s just about EVERY BUSINESS! I’m facing some resistance to niching down even forward,hence why I haven’t fully been building visibility until the message is clear. As I look back over client work I’ve done there’s a theme running throughout: “the emotional and relational challenges that come along with leading people through change and transition. My background certifications in leadership, grief, human behavior seem to be a good fit for this. Again, many industries have these problems. Any question I can be considering to help me niche down further? Thanks in advance. P.S. I have a high-need for variety and feel stuck in a box when I have to go in deep with one industry. Perhaps I should be eating chocolate and seeing a therapist and not reading a blog.
Tracy, chocolate and therapy are always helpful, though chocolate is far more reliable and is best consumed while reading my articles!
The real challenge you’re facing is that you’re trying to figure out what your firm should do by looking in the mirror. You’re considering what YOU like to do and what YOU have done in the past. Alas, the person in the mirror is the wrong person to look at when deciding on your niche. The question is what narrow target can you reach, and what problem do THEY want you to solve. That’s where you’ll find your niche.
Similarly, it’s easy to confuse what you do–your work–with your marketing and with the initial problem clients hire you to solve. For the purposes of winning business, keep your attention on the narrow client problem.
Thank you for being willing to share your situation and providing such an excellent case study, Tracy. Let me know how you fare with the difficult task of finding your niche.
A very well written Article! You are so right its not the era to beat your head against all the niche and its better to work in a micro niche, in case you are solo consultant. Our consultancy firm has more than 10 years experience in delighting Clients. So We pretty much cover the whole niche with full attention to the needs of others.
As you become well established in your micro-niche, and as your revenue grows, you can start to expand into adjacent areas and/or practice areas. Extending off a solid, profitable base is easier than trying to stabilize a broad, rickety base of business.
Thank you for highlighting that point, Harris.