

Rhonda Abrams column: Specialize to find your greatest success

8:21 PM, Nov. 2, 2013  |  Comments
  • Filed Under

If you're starting a new business - or want to expand an existing small business - one of the best pieces of advice I can give is this: Find a niche.

Find a specialty that immediately and clearly distinguishes you from the competition, and then get really good at it. You'll have more customers or clients, you'll have a leg up on competitors and best of all, you'll make more money.

Everyone is familiar with the concept of specialists. When I broke my wrist last month, I went to a surgeon specializing in just wrists. I wanted someone with the expertise to make sure my wrist would get back to normal.

But specializing isn't limited to doctors, far from it. Entrepreneurs in all types of small businesses can carve out a unique place.

Having a niche enables you to stand out immediately from the competition and expand the geographic area you serve - particularly important for small businesses in small markets. This business strategy is also sustainable.

I never advise small companies to compete primarily on price. Being cheaper than competitors means you have narrow profit margins, and a competitor always can undercut you until they drive you out.

Many small businesses believe they can compete and succeed based solely on quality. But quality is very subjective, and it takes a long time to establish and maintain a reputation for quality.

On the other hand, competing in a niche is immediately understandable: "I'm a real-estate agent for first-time home buyers," or "We do indoor plant maintenance for restaurants."

Many small businesses tell me they're afraid to specialize, thinking it limits the size of their market. They want to serve everyone.

But if you're trying to sell to everyone, no one thinks you really understand their needs or bring special knowledge.

When you cater to a niche - either a specific demographic group or industry - customers believe that you understand them.

This means you can charge more.

Yes, one of the great advantages of having a niche is that you can justify higher prices. A website developer who specializes in creating and maintaining websites for dental offices can charge more than a developer who doesn't specialize.

Focusing on a niche also provides you with a built-in marketing plan and gives you more bang for your marketing dollar.

Two lawyers who started a winery came to me for business-planning advice. I suggested they target lawyers, advertising in bar journals, sponsoring bar association events, buying a mailing list of lawyers and sending out direct mailings.

With a clear-cut market, identifying marketing vehicles is easier.

Specializing is even more necessary in today's digital world. It helps you get found through online searches and social media.

My own company, PlanningShop, is one of hundreds of thousands of book publishers. But since we specialize solely in entrepreneurship and small business, we have only a handful of competitors.

If you enter "most awesome business plan book" in a search engine, my book is most likely to show up near the top of page one.

If you're still worried you'll limit your market, remember, there's no rule saying you can have only one business card or one website. One business card can say you're an accountant specializing in veterinarian practices; another can say you're an accountant.

Judge a potential niche with these four factors:

? Sizable. Your market segment should be big enough to provide you with enough customers, but not so huge that it will attract too many competitors and be too expensive to reach.

? Reachable. How will your target market know you exist?

Where can you advertise? Look for publications, media outlets, organizations, or events that reach your specific market.

? Definable. Customers in your potential market should identify themselves immediately as being part of that market.

? Sustainable. The niche should support your business for the long term, one in which you won't quickly deplete the supply of customers.

Avoid specialties highly sensitive to changes in the economy.

Having a niche or being a specialist isn't enough. You also have to be good.

But the high quality gets you noticed, and you can charge a premium price. So, when I'm asked one key to small business success, I always say, "Find a niche."

Join Our Team!


Gannett Careers

Things To Do

See all Events


Special Sections
