Your Niche?

The word "niche" gets batted around a lot. If you have done any reading about running a small business, the word has undoubtedly cropped up. Every small business should have one, they say. What's unclear is exactly what having a niche means.

"Niche" literally means "nook" or, more descriptively, a corner. It's not large. In fact, it's a small, very specific place. And, all of your customers reside there.

Many new small business owners have a difficult time narrowing down their focus. Trying to sell a product or service to everyone is an easy trap to fall in to. Throwing precious advertising dollars into marketing campaigns and not targeting those who are the most likely buyers is a recipe for disaster.

Aspiring small business owners need to think about the following before going into business:

• What problem will my service or product solve for customers?
• Is there a need that is currently not being filled?
• How can I serve customers better than existing businesses?
• What will make my service or product more desirable than others?
• Given my unique products or services, is there enough demand for me to become successful?

Existing business owners may also benefit from adding a new niche product or service. Moving into areas that you currently don't serve can be a great way to increase revenue. The key is being aware. For example, a local competitor may have gone out of business. Is there a way to step in and make the competitor's customers your own? Why did customers use them instead of you? Can you add products or services to increase your base?

Remember - you don't need a bazillion customers, you just need enough. Making them happy and keeping them coming back is the best recipe for success.

Remember the Faithful - It's Good Business Sense

Most businesses have a loyal group of customers who stick with them through thick and thin. They were won over a long time ago. They wouldn't dream of going anywhere else for the product or service. Or, would they?

In the rush to find new customers, small business owners often forget to reward their devoted customers for staying with them. In truth, it is much more cost-efficient to sell to existing customers than it is to search for new.

Loyal customers will leave if they feel unappreciated. Have you ever offered special deals and restricted them to "new customers only?" Have you rewarded returning customers in some way to compensate? If not, say goodbye to some of the faithful.

A few excellent ways to keep current customers happy include:
* Hold customer appreciation sales
* Conduct customer satisfaction surveys
* Talk to your customers

That last one may seem obvious. You probably talk to your active customers quite often. Engaging your customers in conversations about additional products or services they would like to see you offer and asking for suggestions about ways to improve your business can be of great benefit. You expose yourself to new ideas and your customers become part of your business family. It's a win-win!

Creative Blocks

In addition to being a web designer and small business consultant, I also write content for blogs and web sites. As every writer knows, there is nothing more frustrating than a writer's block. It gets to the point where I feel like I am writing the same things over and over again!

A block in the creative thought process can also keep your business stagnate. You seem to lack good ideas to move forward or give yourself new avenues.

Here are some ways to help break out of the block:

1. Stop thinking about it. Move to another project, focus on something else for awhile. Sometimes the perfect path to growth is not trying at all.

2. Brain storm. Get a pencil and a piece of paper and just let thoughts flow. Write them down, even if you think they are silly or unworkable. Don't think about what you are doing, just do it. You may surprised when you review your list and find some great ideas.

3. Look at what other similar businesses are doing. If possible, visit them. Check out their web sites. Obviously you do not want to copy exactly what another business is doing, but you may discover other ways you can move forward.

4. Talk to people. Get ideas. Family members, friends, staff and other business owners - get their feedback. Ask how you can improve or offer more. Bounce ideas off of them.

5. Talk to current customers. Ask them what other services or products they would like your business to offer. Ask them to suggest ways you can improve to serve them better.

By getting those creative juices flowing again, you will be able to come up with new ideas to move your business forward.

Ways to Attract Customers

In tough times like these, customers are understandably careful about when, why and how they spend their money. As a small business owner, it pays to offer customers an added bang for their buck.

Free is a very attractive word. It commands attention. By offering a free service or item, along with a purchase, you might be a able to persuade a customer to buy from you rather than your competitor.

For retail stores, one technique that works is to have a drawing for a prize of some sort. Not only can you bring people into your store this way, but you can, if done correctly, attain contact information so you can send out email or mailed newsletters to the entrants. Note: if you are gathering contact information and intend to send either email or mailings, you must state that on the entry form and ask the person to check off a box to give you permission to use the information that way. It is also advisable that you let them know that you will not be selling this information to any third party.

Before offering something for free think hard about what you will be giving away. Money is tight for small business owners, too, so you don't want to spend so much on your freebie that it negates the sales you bring in. For example, with TTR Design, my web design business, I will at various times offer one free additional web page with a package purchase, a free slideshow with package, free contact form or a percentage off the final invoice. If I can get someone to buy a web design package, adding an additional page is not too costly and it helped me get the job in the first place.