Creates Business Success
by Mark Munday
More Business Skills Articles
Published on this site: January 2004 - See
more articles from this month
It is often said that you just can't be everything to everyone. This is especially
true in business. The worst thing business owners can do is to delude themselves
into thinking that everyone is in their buying audience.
Trying to satisfy
everyone's requirements for your products or services is a really big ask. And
it is a thankless task too. You run the risk of being only moderately successful
at keeping all your customers happy. This means that customer satisfaction, on
average, probably won't be high enough to bring you lots of referrals and repeat
business. And your business will be only moderately successful.
As a small
business owner, you will do far better if you focus the delivery of your offering
on satisfying the needs of a very specific subset of the market. Because your
niche market has well defined needs, it is easier to satisfy them. And your
selected
customers are like to be a lot more pleased with your services.
You make
a much bigger splash by jumping up and down in a puddle, than when you bob up
and down in the sea. Similarly, focusing on a niche target market means that you
have a much greater impact on the customers you serve. Customer satisfaction soars.
And your reputation as a specialist grows as customers pass the word around.
The
need for a well defined market niche increases dramatically as markets become
more competitive. Having a market niche enables you to differentiate yourself
from competitors. And it provides you with a steady stream of business, even in
the most crowded, fiercely competitive market.
Let's consider an example.
Imagine that you are an ex-accountant, and that you have decided to cash in on
the booming internet business market. So, you buy some equipment and software,
and you set yourself up to provide website hosting services.
The market
for this service is enormous. Millions of new websites are created every year.
And the rate of growth is skyrocketing. But you are dismayed to find that attracting
any of this business is almost impossible for a small newcomer like you. There
are so many people out there doing the same thing at cutthroat prices, that you
just can't get your business off the ground.
Imagine how different your
experience might have been if you only offered this service to accountants, together
with a suite of tools accountants require for servicing their clients over the
internet. As an ex-accountant, you would understand the needs of your target market
very well. So you could put together a compelling service offering. You would
also have the credibility it takes to inspire confidence in prospective clients.
Your
specialisation would give all accountants out there who want to get on the net,
a really good reason to do business with you. The size of this target market would
be a small fraction of all the people creating websites. But your ability to penetrate
this niche market would be infinitely greater. As a specialist, you are also able
to charge more for your products and services. Which means that you don't have
to compete on price.
Dominating a niche market means that you are well placed
to build a compelling competitive advantage. One that brings you sustainable business
success in a highly competitive market. Applying this principle will make any
business more successful. You can base a market niche on various criteria : your
location, profile of your customers, industry knowledge, people you know etc.
Think of how you can add value for your customers in a way that no one
else is doing it. And use this as your starting point. Your objective should be
to create and take ownership of a market niche. And to do it in a way that makes
your position virtually un-assailable.
As
a Business Strategist and Coach, Mark works with business owners to help
them achieve their business goals. He has just unveiled a unique and revolutionary
system for building your business into what you really want it to become. Be sure
to review it at www.StratPlanWizard.com
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