Why it pays to focus on a niche
Posted By cls on September 9, 2010
After reading the article below that was sent to me this week by a colleague, I am even more convinced that developing a “niche” is simply the best business decision one can make. After 5 years of being a generalist, I announced back in January 2010 that our defined niche was “Senior Communities”. CLS provides the funding needed to buy, renovate or construct Senior Living Communities. This includes Assisted Living, Independent Living, and Skilled Care Nursing. I have personally experienced all 10 of the benefits described in this article developed by Michael W. Byrnes Jr. www.byrnesconsulting.com.
Why it pays to focus on a niche
Market segmentation has been a successful strategy for years, yet many do not benefit from implementing this approach. Most individuals know they cannot be all things to all people, but their businesses models underperform because they are trying to do just that. By dividing a large population into segments, a business can then position itself to better fulfill the needs of one unique group.
Ten benefits of concentrating on one target market.
1. Less distractions. The scope of products and services a niche needs become narrowed, making it easier to grow to be a specialist, tailoring a customized offering, which improves satisfaction, retention and advocacy.
2. Efficiencies. Service offerings and operational processes can be much more refined, preventing a business from being pulled in too many directions.
3. Word of mouth. News will spread recognizing the business as “the one” to use in exclusive circles that are sometimes hard to penetrate.
Click here to view the entire article http://byrnesconsulting.com/2010/09/03/why-it-pays-to-focus-on-a-niche/
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