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THIS WEEK
Inch Wide Mile Deep Niche Businesses
ALSO IN THIS EDITION
Inch Wide Mile Deep Niche Businesses
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Talk to most new businesses about who their customer is and they say, "Well everyone really". Really? Everyone? Small to medium businesses simply can't afford to have everyone as their customer. I mean, just think about the cost of trying to serve the needs of everyone from birth to death, male and female, urban and rural across the world. It fries the brain just thinking of the numbers.
Smarter small to medium businesses have worked out that it is better to serve just a slice of everyone in the world – a very tiny sliver that is an "inch wide mile deep". What do I mean by that? Well, it means finding groups of people passionate about a common interest and serving their needs. It means only serving that group – and providing goods and services that directly meet their needs.
The internet makes it easier to get enough of these small groups of people together to make a viable business in a way that traditional businesses can't match. If you only have a traditional bricks and mortar store – then you can only serve the population around you.
Combine your bricks and mortar store with a strong online presence and suddenly your audience of passionate people wanting to buy from you explodes. Lots of small businesses are starting to realise the power of a double presence and are capitalising on it.
So how do you find your niche? Start by thinking through all the things you are passionate about. Hobbies, books you read, places you go, things where you are a local expert. Chances are these are niches. Write them down.
If you already have products or services you are passionate about – write them down too.
Next, hit the net to see what is out there. Do your research – find out in the areas on your lists what people are looking for on the net. Look at things such as Google trends, About.com (the "be a guide" section), Alexa (top 500 sites), and EBay Pulse (to see what people are buying).
Do more research. Use keyword analysis tools to help you work out how many people per day are looking for particular things in your areas of interest. Tools such as Google Adwords Keyword Tool, Wordtracker, and Market Samurai all give useful data.
Why are you doing all of this research? Well in the old days, people built, bought, or created something and hoped people would buy it. How much smarter to work out first what people are looking for that they are not able to easily find – and then if this is within your passion or expertise, then building, buying or creating something that meets their needs. That way you already know you have keen buyers desperately looking for what you can offer. You swim against the crowd to find what works before you invest time and money into creating options.
So what are some great niche businesses out there? I have seen businesses specialising in selling particular forms of comic collector cards; others that sell pasties to "exotic" dancers; businesses that sell quirky and unusual dolls and ornaments to Goths; businesses who sell toys to geeks; and the ubiquitous scrapbooking supplies stores. There have been businesses who specialise in selling edible fruit trees; others than only sell spring bulbs; businesses that solve how to get rid of bed bugs and others that sell pumpkin carving templates.
These are all niche businesses at their finest "inch wide mile deep". Many of these businesses have bricks and mortar stores in addition to their online store. A number of the owners have multiple niches they work within. They start with one business niche and when that is humming – they move onto the next business niche.
But niches are not just reserved for businesses selling "stuff". I have seen real estates in the US who only specialise in selling properties to people who own pets. I have seen coaching businesses that specialise in coaching hippies and conscious entrepreneurs. There are law firms who specialise in just IT businesses and accountants who only serve female home based business owners. Each of these businesses are doing well. They have found their niche and are serving it extremely well, providing goods and services that the niche are crying out for.
Have a think about your business. What niche are you trying to serve? If your business is struggling, perhaps the answer isn't to widen the net, but to get even more specific and then leverage the power of the net to attract the right people to your business. How can you create an inch wide mile deep business?
| HR Tip of the Week: Dealing with the Unique Thinker |
 Every business with more than one employee tends to have one - a unique thinker, maverick or radical employee. Someone who thinks outside the square, perhaps is constantly full of ideas, or someone who is amazing at finding solutions to problems.
The challenge is that often these sorts of people are not the easiest work mates to get along with. They may be stubborn, taciturn, full of so many ideas that nothing ever gets finished, abrasive or just so flighty that you can't pin them down on anything. They may be emotive, personal values driven or just downright rude.
How do you manage them? This is perhaps one of the hardest parts of HR. Managing someone who acts as a catalyst for change in the organisation but who has the social skills of lone wolf. Their contribution at times may be breathtaking - but at other times they are divisive.
Some of the options I have seen over the years are:
- Housing creatives together to create a "Think Tank" with a gatekeeper to help control the social niceties.
- Building core social skills that may be lacking through executive coaching.
- Working with the person to determine which boundaries are non breakable, and which ones truly can be fluid.
- Recognising and valuing their contribution while also clearly specifying which behaviours are inappropriate or unacceptable.
Unfortunately there also comes a time where the cost/benefit ratio tips the wrong way - and you may have to lose the unique thinker for the overall benefit of the organisation. You have a duty of care to the other employees health and safety and need to ensure you take this responsibility seriously. This is always a hard loss for both the organisation and the person.
All I can say if you have to go down that path is to document EVERYTHING - every tiny detail and problem, as often the unique thinkers carry uniquely big grudges. Go totally by the book and be prepared for fall out.
Yes ... I am a proud Geek and spend way too much time on this website. But where else can you get great t-shirts with sayings such as "Chuck Norris Destroyed the Periodic Table Because He Only Recognizes the Element of Surprise"? (My personal favourite - t-shirts with your own sound track.)
How about 32GB thumb drives the size of your fingernail or motherboard Christmas ornaments.
I particularly love the Wacky Office supplies section (folders with attitude) and Cube Warefare section in the Geek Toys area (Airzooka Air Gun - complies with OH&S and still lots of fun).
Seriously Think Geek is a great place to get Christmas gifts for those tech heads, gadget freaks and general hard to buy for people in your life. It is a great example of a niche busines and worth checking out to see how you can create a solid business out of some very simple ideas.
Enjoy Think Geek! www.thinkgeek.com.
Lots of businesses want to add red to their marketing and their branding. But a whole pile of scientific studies have been checking out what happens when people see red. The results are not so great for most businesses. You may want to rethink using a lot of Red in your marketing. Read why in this blog post
exuberantly yours
Ingrid
Heart Harmony
PS: This week's Small Business Tips blog included a post (and video) about "Looks Can be Deceiving "
Legal stuff: This newsletter is intended only a general guideline for Australian businesses. You should seek specific advice for your situation rather than relying only on this newsletter
Earnings disclaimer. Some of the content may include advertarial information. But - unless I know and trust the product I will not recommend it.
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