How to Grow a Successful Business – In the 1980s, it became fashionable for businesses to be diverse and offer a variety of services. This strategy started to look less effective in the 1990s when many businesses decided to stick with the core businesses they were most familiar with and ditch non-core businesses.
Therefore, one of the fundamental rules of starting a small business is “find a market niche and stick to it.” This means that businesses should specialize in the market sector they are in, rather than generalizing. A good example is a retailer that sells men’s clothing and not all types of clothing for men.
But entrepreneurs don’t always take that advice seriously enough. They often think that selling to the broadest market is a more likely path to success than focusing on a specific market segment as illustrated in the example above.
How to Grow a Successful Business
The goal of this article is to explain how small business owners define their niche, target the right customers and, have the courage to refuse business from the “wrong” people.
The Single Most Important Element for Business Success
Why be afraid to specialize? A common question that needs to be answered is why so many small business owners seem to have difficulty finding their niche. I believe the main reason is because they are afraid.
They believe that if they concentrate on one particular area and remain committed to it, they will have to turn away potential customers. This is a worry for many business owners, especially those who are just starting out.
Apart from that, many people think that if they offer various products/services then they consider it an advantage. For example a general retailer in the clothing industry might offer all types of products for men, women and children. However, by doing this they may find it difficult to focus on their target market.
Following the same example, retailers may have difficulty attracting customers to buy baby clothes. Customers prefer to go to stores that specialize in selling baby clothes because they will offer a wider variety of clothes they sell. Therefore, I believe that when a business owner tries to be everything to everyone, they are actually not really helping anyone.
Another thing that needs to be raised is whether each business needs its own niche. Most successful businesses stick to a very narrow market niche.
For example, Microsoft has been successful in sticking with its Windows operating suite. In Cyprus, Charalambides was very successful by concentrating on milk. The principle of specialization applies to both large and small organizations.
They can lose focus just like the sole proprietor who is so excited that the phone rings that he will do anything just to make a sale. On a large scale, we only need to look at the success of EasyJet which is a no-frills aircraft and compare its current performance with British Airways which provides a more comprehensive service. Even companies like British Airways are now realizing that they need to focus more on their core operations.
How entrepreneurs avoid pitfalls
In addition to the above, we need to identify how an entrepreneur avoids the difficulties of providing public services. Smarter entrepreneurs will determine what they do from the start. They will get better quality customers with a narrower focus and they will get ideal clients without having to compete on price because clients will see that the company understands their concerns.
It takes less sales effort to convince customers that they know how to serve them. For example, if management consultants narrow their focus to working strictly with sole proprietors, then they will quickly define themselves and will reduce competition because very few management consultants focus on sole proprietors.
Potential clients will be very happy to find them because they will be specialized enough to know everything there is to know about their business and their problems.
An interesting question to consider is whether start-ups that are desperate to break even will have difficulty turning away potential clients.
This is the thing that business people fear the most, but the opposite is true. For example, when I talk to pathologists about developing a topic, they will usually show me their business cards that give no indication of their specialty. If a particular problem occurs, it will be difficult to recommend the doctor because one does not know his specialty.
On the other hand, what if you are having breathing problems and a friend tells you that they can recommend a doctor in helping the patient breathe. Assuming you are happy with the doctor, wouldn’t you think about that doctor the next time or if one of your friends has breathing problems. Of course you will. That’s how to build a niche and use it to find the right clients.
How does an entrepreneur find the right market niche?
If they have a mission statement (i.e. what the aim of the organization is) then this can be used to provide business focus. I believe business owners should write their mission statement based on what problem they care most about solving [the overall goal of the business], who will benefit from this solution [who their target market is], and how they will solve that problem in some way. that upholds their values, standards and ethics [what you do for your customers].
Business owners need to consider the relationship between market niche and marketing efforts. Something to consider is how defining a niche will help marketing, sales, and public relations efforts. It is worth mentioning that everything in business is easier when you have a clear market niche.
For example, your current customers will be more likely to refer you to people who have the same problems as them. Your marketing and public relations campaigns will have a natural, sharp focus. Your sales staff can handle the specifics, not the vague, and they’ll waste less time on general prospects and choose to target more likely clients.
A business can be successful without having a market niche
Some people would argue that there are businesses that appear to be successful but don’t just have one specialty. An example of this is the British Homes Store (department store) which provides a variety of products. My answer to these people is that companies can be very lucky to start their business because they have suitable positions, good contacts, or because they become fashionable.
But in most cases, I believe being a generalist is not a plan that will sustain long-term business growth because they never create an identity that can sustain it. Not having a clear target market is like having a ship without a captain.
Although many business people seem to be aware of all this, few act. Because they think they already have an identity. In their minds, they know exactly what they are doing and they don’t realize that their customers don’t realize it. In the past, the case of the British Homes Store is a good example as the concept is not currently working as customers prefer specialist retailers.
This is despite BHS being recognized as offering value for money
The question generalists may ask is how they should remedy the situation. I would personally recommend that they obtain data from their current customers through questionnaires.
Companies should ask them anonymously to answer what they believe are the company’s strengths and weaknesses. It’s important to ask them why they chose that company over others and what they tell people when they refer the company. A well-designed questionnaire can pinpoint areas where a business owner is out of harmony with his customers.
I believe that business owners should talk to their customers regularly and should not be isolated from them. They need to identify their needs, get to know them and listen carefully. While I accept that it is impossible to meet all customer needs, owners should at least know what they are looking for.
The golden rule is to focus on your ideal customer and their needs. What each customer wants and needs should not distract the business. This is because it cannot be everything to everyone. In my opinion, the best efforts need to be made towards a company’s largest, most loyal and long-standing customers.
The final thing to consider is how the typical overworked, undercapitalized business owner finds the time to do all this. The golden rule is that they have to make time.
Planning may seem like it takes a lot of time to run your business, but if you spend at least a few hours a month then business people will save a lot of time and thousands of pounds every quarter because they will focus their time and money on their goals. customer.
I think people put off planning because they’re responding to a problem and don’t think they have time to think about strategy. But they need to steer their business in the direction they want, rather than letting it get out of control and then trying to catch up.
Conclusion
As Cyprus moves closer to becoming an EU member, we are approaching the point when we enter a new business environment where our operators in Europe have lean and focused (specialized) operations. I believe that the Cypriot companies that will survive will be the ones that are very focused and have a specific market niche.
For example, I believe there are better prospects for a professional company exporting halloumi (a specialist cheese) than for a company producing all types of shoes. Therefore, it is important for companies in Cyprus to concentrate on their expertise rather than being an expert in everything as this is a strategy that may not pay off in the long run.
