How Entrepreneurs Can Benefit by Targeting Specific Niches
Over the past several decades, as our economy has embraced capitalism with fully open arms, the consumer has become much more demanding in the type of products or services he uses.
While 50 years ago, you could probably get a half a dozen brands of butter, today you will find rows upon rows stacked with various brands that sell everything from salted to low fat to spiced butter.
This is just an example of how consumers become start asking for more personalized, niche products when there is enough competition to fuel their demands.
Thus, for any would be entrepreneur who wants to establish his own business, finding a profitable niche and conquering it is very important.
In most fields, a new business can't compete with the big players in mass markets.
But where a new business can succeed is in selling something for which there is a small, niche demand, and completely owning that niche.
This is the essence of modern day businesses - don't sell the car; sell the cherry colored camel leather seats that a particular demographic of the car buying public would demand.
For every Walmart, there is a Whole Foods.
For every Gap, there is a Hot Topic.
For In this model, finding the right niche can make or break a business.
Go into a field that is too wide open, and you will find yourself competing with players who have way more resources than you.
Go into a field that is too narrow, and you will find yourself with too small a customer base to actually make a profit.
The key is to strike a balance - not too niche, not too broad.
Walmart founder Sam Walton toured the country, exploring the various retail models before he set up Walmart.
In the same way, a would be entrepreneur can do prior research to target a particular niche.
You don't have to tour the country, of course, but a study of your local market, the needs of your consumers, the grievances they have about existing services or products will give you valuable insight into niches that you can target.
Never be lazy about market research; it could be the number one factor in determining your success.
While 50 years ago, you could probably get a half a dozen brands of butter, today you will find rows upon rows stacked with various brands that sell everything from salted to low fat to spiced butter.
This is just an example of how consumers become start asking for more personalized, niche products when there is enough competition to fuel their demands.
Thus, for any would be entrepreneur who wants to establish his own business, finding a profitable niche and conquering it is very important.
In most fields, a new business can't compete with the big players in mass markets.
But where a new business can succeed is in selling something for which there is a small, niche demand, and completely owning that niche.
This is the essence of modern day businesses - don't sell the car; sell the cherry colored camel leather seats that a particular demographic of the car buying public would demand.
For every Walmart, there is a Whole Foods.
For every Gap, there is a Hot Topic.
For In this model, finding the right niche can make or break a business.
Go into a field that is too wide open, and you will find yourself competing with players who have way more resources than you.
Go into a field that is too narrow, and you will find yourself with too small a customer base to actually make a profit.
The key is to strike a balance - not too niche, not too broad.
Walmart founder Sam Walton toured the country, exploring the various retail models before he set up Walmart.
In the same way, a would be entrepreneur can do prior research to target a particular niche.
You don't have to tour the country, of course, but a study of your local market, the needs of your consumers, the grievances they have about existing services or products will give you valuable insight into niches that you can target.
Never be lazy about market research; it could be the number one factor in determining your success.
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