Tuesday, December 16, 2014

Niche Markets

One of the things I find amazing is how focused niche markets are. I noticed this as a kid collecting baseball cards and then paying attention to all the very focused niche markets I saw. When people find it surprising that people actual focus on that I don't really find it surprising but I do still find it interesting.

Here is a good example of what I mean, a business focused on manufacturing bottle caps specifically for use in craft and jewelry projects. That is not a market I think most people think of and say wow if only I could build a business in that market I would be set.

But by focusing on customers and building your business to give customers what they want you can build a good business. That is how the Bottle Cap Company built itself. It started out selling on bottle cap products at local farmer's markets and then ended up with an extra supply and sold that on eBay. And based on that response they saw a larger global market and expanded. And now they ship products and supplies daily all over the world from their warehouse located in Nampa, Idaho.

The success of companies like Google and Apple and Tesla are interesting. But far more success is gained in small companies providing needs to niche markets. I wrote about recent lean startup weekend in Johor Bahru, Malaysia recently along the lines of providing products and services to meet customers needs and not needing to try and become the next Twitter. Sure making billions sounds nice but that is extremely unlikely. However building a successful small business is possible by managing the business well and applying good customer focus principles.

Related: What Works for One Business May Not Work For Others - Pilot on a Small Scale First, Good Advice We Often Ignore - The Customer Knows Best?

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