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Aim Small to Win Big – Niche Businesses

Thursday, September 12, 2013   By Mike Reddy

 



"The quickest path to getting big in a new market is to aim small."

Let's go ahead and say it: smaller is (sometimes!) better! Small businesses looking to position themselves for growth and competition in a bigger market start with niches.


A niche is defined as a small and specialised population. In business it can have many facets. Age, race, education, location, marital status-these are just the tip of the iceberg on the many niche breakdowns.


To gain notoriety, one must establish expertise and be 'better than the others'. For small businesses, the simplest way to do this is to identify your target niches, and start there.


It is like a puzzle; every piece is unique in its own way, but one by one, placed together, the pieces cover a greater area.


These days, business experts claim that "big is bad" and mainstream consumerism is fleeting in the wake of the designer 'indie' niches- producing quality products, catering to specialised consumers.


Business success comes from the ability to corner and capture new markets. Tapping into new markets bolsters reputations, puts competitors on the active defence and generates additional revenue sources.


Small business must be prepared to break down their boundaries when tackling the challenge of new market acquisition. Rejuvenation is important, but innovation is the real game-changer.


While some say the niche is the way to go, others are sticking to their guns, insisting that mass marketing appeal is still the winner.


Essentially, critics of the niche theory merely want to remind us that small is only good when the seller is an established leader in the market.


Example: art. Old art is valuable, but only when the artist was a recognised and veritable leader in their medium.


There is a clear difference in being a niche product and being an owner of a niche category.


True success comes from becoming a category leader, no matter what size the category.


Mike Reddy is a Chartered Accountant, business coach and advisor helping businesses in Sydney, Melbourne, Brisbane and Gold Coast to easily increase their profits and cash flow. He is currently President of the North Sydney Chamber of Commerce, a Regional Councillor for Sydney North East and a member of the Institute of Chartered Accountants Sydney leadership team. As well as advising businesses, Mike presents business development seminars and webinars and is regularly contacted by the media to comment on small business matters. You can connect with him on Facebook, Twitter and Google+.