The Sunday Times – UK published an excellent article yesterday on the importance and opportunity for small businesses to attach themselves to market niches.
"You do not need a sledgehammer to crack a nut. This is why, when it comes to exploiting new high-margin markets, small businesses often have an edge over much larger competitors."
Small business has a tremendous advantage in satisfying what larger companies often determine are undersized markets. What's small to some is huge to others! Small business can tailor solutions and address specific needs, changing the rules for niche markets in ways large companies could never play.
"�…play to your strengths. "The biggest mistake small-business owners make is to say that competition is getting difficult because they are fighting against the big boys. The secret is not to go head to head with them. Instead of trying to compete against large organisations that have the advantage of economies of scale, try to change the game slightly."
Niche markets command higher margins and create fiercely loyal customers. The upside of niche markets is tremendous. Downsides exist, but staying close to your niche, remaining nimble in your solution and continually innovating insolate your business to no greater risk than business itself.
Does your business serve a niche? If so, what benefits have you realized? If not, why do you think niche marketing has been ignored?