Why Is It Important to Find a Niche for Your Business?

If you have been looking into building your own business online for any length of time then I’m sure that you have come across the idea of targeting a particular niche. What is a niche in business terms? A niche is a narrowly defined section of the market. In this article I’m going to talk about why it is important to find a niche for your business.

Many people are a bit afraid of this narrowing down process in selecting a niche market for their business. They are worried that they are going to miss out on potential sales. Alternatively some people are reluctant to only market to a particular niche because they believe that their product or service would be of benefit to pretty much everyone. Once you understand more about how marketing and business works then you will come to see the wisdom of focusing your efforts on just serving one part of the market.

The truth is that if you target everyone you may end up attracting very few people of all. The key behind good marketing is to connect with your potential customers in such a way that they feel that you understand their needs and to build their trust in you so that they believe that you can solve their problems. It is impossible to connect with everyone using the same marketing message. And if you have too many different messages out there then customers will not see you as an expert but rather a generalist.

The reality is that once you take the plunge and choose a niche to target then it will make building a successful business so much easier. Once you know what main problem or challenge you are going to address and who needs your help then designing products and programmes and creating your marketing materials will be much more straightforward. You can really get to know your target market and understand their challenges and their goals and this will come across in the language of your sales letters, your emails, your articles or blog posts and so on. You will be much more attractive to this group and so you will not have to work so hard in the long run to persuade them to accept and invest in your solutions. Another important benefit of narrowing the focus of your business to a particular niche is that you will face less competition.

Shield A Business By Protecting The Public And Its Employees

Businesses tend to think of responsibility in a selfish manner. After all, moral issues aside, self-interest is what fuels the engine of capitalism. However, what many companies, particularly small businesses, do not realize is that there are reasons beyond altruism for protecting the public and employees. The simplest way to see this in action is in the efforts companies make to limit their own risk.

Limit Risk

For a business, the proper approach to any potential legal responsibility extends beyond the financials. A company that simply accepts risk and does nothing but set enough money aside is being wasteful. That money is resources that the company is essentially planning to give away. The smart business is proactive and looks for ways to limit its long-term, potential financial obligation.

Protecting Them

Employees, and in some scenarios the public, are an extension of the business, and this is a point that many small businesses overlook when determining how to protect themselves. Would you purchase health coverage that did not extend to your arms or legs? Of course not, which highlights why protecting the public and employees is so vital.

Awareness

A mistake that so many businesses make is that they treat employees as if they are the enemy. While it is true that employees themselves can be a great source of risk, a business will find its greatest success by having an open and honest relationship with the employees. Make them aware of the risk, the potential loss, and the solutions.

Training

Protecting the public and employees goes beyond just awareness. They often require training, from basic knowledge to hands-on learning. Ongoing training can be expensive, but consider it an investment in tomorrow. That money spent today can save a lot of money in the future and reduce the amount of resources the business needs to have reserved.

Safety as a Process

For most businesses, limiting risk is not a one-time endeavor. In order to have ongoing success, the business must be proactively involved in a performance management cycle. With a cycle of planning, implementation and analysis, a business can protect its people and greatly limit future risk.

Special Needs

Even companies that proactively protect their employees come up short, and this usually happens concerning special needs. Special needs are protection that is necessary due to unusual risk. For instance, employees going overseas for a business meeting will undoubtedly have special needs.

Conclusion

Employees, and in some cases even the public, are a crucial extension of the business itself. A good policyholder will recognize this and help the company to account for it. It is vital, however, not to assume that this is the case. A small business should be proactive about protecting itself, its employees, and the public that it touches.

A Business Plan Gives You Four Big Advantages

A business plan is not just for large corporate organsiations. It’s essential whatever your business size or stage of growth. Whether you’re starting out, with just the seed of an idea, or have been in business a number of years, a well-crafted plan will capture your vision and purpose, products and services, revenue targets, support required and actions to make it a reality.

As Mark Spillman, of cosmetics company Bare Escentuals says…

‘We’ve experienced significant growth over the last 4 years. From a small company we’ve now become a leading company in the UK premium cosmetics industry. This growth has, of course, been achieved with great people and great products but essentially it’s been achieved with well-crafted co-ordinated business plans that include all aspects of our business, from operations through to customer service.”

It really is a blue print for success and like a vision board you can bring it to life with pictures, quotes and inspiring goals… so that it becomes your own personal and practical guide to making your dreams a reality.

Here are just 4 big advantages to having a written business vision and plan…

Benefit # 1. It provides you with a bigger WHY. It’s easy to become exhausted with the day to day busy work of running a business and there probably will be times when you wonder ‘is it worth it?’ By having your purpose, vision and plan to hand you can reconnect with the real reason why you are in business.

Benefit # 2. A business plan maps out a clear route for where you’re heading which you can refer to, review and adjust as you progress. Think of it as an important destination that you’re setting out on. Like most holidays or trips, for example, you would work out in advance where you are going, how long it will take to get there and how much it would cost. Having this information will get you to where you want to get to faster than trying to figure it out along the way. Then once you set out you can make changes and course corrections when circumstances change or obstacles appear.

Benefit # 3. It acts as a benchmark against which you can assess what’s working and not working in your business before you run into problems. If you’re not meeting your revenue targets, or a particular product or service has not taken off, by referring back to your plan you can review your pricing, marketing and product mix to work out the changes you can make to get you back on track financially.

Benefit # 4. Your plan provides the template for you to work out different strategiesto adopt to move your business forward. One strategy may be to grow your client database or list, so that you can raise your profile and visibility, or you may want to focus on retaining existing clients by introducing new products or services and increasing the level and quality of service provided. Concentrating your efforts in this way will speed up your results.

Much has been written about the law of attraction and the power of positive thinking to manifest your dreams but your visioning needs to be backed up with planning and action to make it actually happen.

By investing a small amount of time upfront in preparing your Business Plan you’ll be amazed, like Mark Spillman, at how quickly your business can take off!