Two of the focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. Business is as much about competition as it is about generating profit. It’s thus important to think out your niche to give yourself the best competitive advantage. The following contributed post is entitled, Finding Your Business Niche in an Increasingly Competitive World.
* * *
When people start businesses, they tend to have a couple of good ideas that tend to fail after a bit of serious thinking. This is fairly normal; it shows that we’re optimistic as entrepreneurs, but it does highlight a fatal flaw in our approach to developing business ideas; they’re simply not realistic. If they are, they demand a lot of money, exposure and time to flourish. Unfortunately, “time” is difficult to gauge when it comes to business success. You could plant the seeds of a promising business idea, only to realize that it grows into a world that no longer needs it.
As such, finding a business niche can be incredibly difficult these days. Trying to apply your set of skills to something unique that draws in customers can be challenging, and there’s often no safety net for you to fall back on when it comes to investing your hard-earned cash into something unknown. So how do you find a niche these days? Or is it better to forever stay in the shadows of a larger business doing something that can guarantee enough success to live off?
What do you really want from your business?
This is perhaps the most important question to ask yourself; what do you want from your business? One of the most common answers is money. The other is because you’re passionate about something. Someone might want to start a clothing business because they’ve identified a niche, but in reality, they’re not exactly passionate about it; they’ve just found an opportunity that makes them more money. On the other hand, someone might start a business because they’re truly passionate about a subject, but they ignore the fact that it might be a niche with not enough exposure or active consumers.
So we have to ask the question; what do you really want from your business? Are you willing to do something you’re not passionate about for the money, or are you going to chase your passions and accept the fact you might be making less money than something more generic?
The solution is simple; do what you do passionately and you’ll find a niche
No matter what you want from a business, doing it passionately and reframing your approach is the key to success. If you’re in the business of senior care, then high-quality aged-care refurbishments, vetting and hiring the right employees and taking an active approach to caring for your clients is going to show that you’re passionate. If you’re a fashion company, focusing on things such as sustainable production, low prices and avoiding any morally-questionable activities (such as cheap overseas labor) will reel in the customers and show that you’re truly passionate about the subject.
On the other hand, if your passion is for success and money, then that’s perfectly fine too. Use every strategy that you can to build a large audience, identify opportunities as soon as they appear and optimize your approach to business to feed your hunger.