Belmont University

Niche Markets Need Planning

My column in this week's Tennessean looks at the ins and outs of niche markets.

Generally, a niche strategy is a good way to enter the market for a new business. It usually takes fewer resources for the startup because of lower marketing costs and the ability to start on a smaller scale.

Success rates tend to be higher for niche businesses since they have less direct competition.

Without much competition, niche businesses often can charge higher prices, which allows for quicker positive cash flow during startup and better margins once the company is profitable.

But, entrepreneurs also should be cautious when picking a niche. Here are some things to consider.

My column offers five key tips for finding success in a niche market.


Posted by Jeff Cornwall on April 28, 2008 06:05 AM |

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Comments

Specialization is an absolute necessity when operating an online business. People search the internet with surgical precision typing in exactly what they are looking for -using the keyword or phrase that explicitly describes what they are looking for. The mistake many internet companies make is not focusing on a narrow niche. Surfers, unlike brick and mortar shopping mall browsers, know exactly what they want and seek it out with laser like precision. Specializing in a niche - whether it is a product such as hammocks, or a service like doggy daycare - will give you a better chance of success and definining who you are and who your target market is.

Personally in my business, specializing in brokering ONLY websites and internet businesses, has been a great way of separating our company from the thousands of other business brokers selling companies. We specialize and have expertise that internet business owners relate to and want for representation.

David fairley
websiteproperties.com

Birdied by: David Fairley | May 1, 2008 11:26 PM

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