The benefits are higher prices, less competition, and a better ability to withstand downturns in the economy.
You observe, you talk to clients, better yet, you work with clients and find out their needs firsthand, and you experiment – i.e., try out new things. They don’t all work, but some do. The benefits of pursuing a niche are higher prices, less competition, and a better ability to withstand downturns in the economy. You also may have a better ability to adapt quicker to a changing market due to your intense involvement in something. Downsides include not everyone in the firm wanting to be pigeon-holed into working in one area and there is a possibility that a niche can go away if it is based on specific legislation or a particular technology. What niches are you pursuing? If none, isn’t it time you started some exploratory efforts now so you can be better positioned for future success? I think so.