Today’s business climate is a busy and stuffy one. There are countless companies in every industry that follow the book when it comes to offering products and services to their audiences and there’s very little to distinguish them. A good example can be seen in the similarities between Android phones and how stale the market has become. Every phone tries to desperately distinguish itself from the competition, yet they all follow market trends such as removing headphone sockets and focusing on having a high screen-to-body ratio.
These copycat culture can get boring regardless of the industry you’re in. With such a high focus on offering products that are as close to what the customer wants as possible but no slowdown in the number of startups and small businesses appearing, it’s easy to see just how bloated every market will eventually become.
Fortunately, that’s where niche businesses can be profitable. However, niche businesses come with their inherent flaws and risks, so in this article, we’re going to explain what it takes to operate a niche business.
If You Don't Have Passion, Don't Run A Niche Business
One of the biggest differences between a niche business and a general one that offers a popular product is that the people behind it are often really dedicated and passionate about what they do. For instance, an indie video game company typically makes whatever it wants because the team is passionate about a certain type of game or era that they want to simulate. In contrast, big-name developers typically go for whatever is popular and least offensive to generate as many sales as possible.
This type of mentality can be seen in other businesses as well. Large companies are afraid to innovate because of the potential risk to their profits, so they decide to go with the safe options and make very small changes every few months to test the waters. This is completely understandable given how much control is handed to investors, but this is where niche businesses oppose them.
Niche businesses typically focus on smaller interests and hobbies that might not be enjoyed by everyone but still have a very loyal following. This could be something like mobile apps, blogs about highly specific interests or even writing books about particular subjects. These are all inherently creative ventures that require you to be passionate about what you’re making or else you’d give up.
At the end of the day; a niche business has a low chance of making you incredibly rich. This is because the product is either not in demand or the market hasn’t developed yet. If, by some chance, that you managed to create an entirely new market based around your product, then you’re doing something historic and deserve all of that success. However, if it’s unlikely to go in that direction, then you’re going to have a tough time growing your niche business and it’ll be your passion that fuels you.
Do You Have The Right Contacts To Make It In Your Industry?
One of the issues with starting up a niche business is that you’re expected to have a lot of contacts in order to grow your business. For instance, if you’re doing something medical-related then you’ll need to know where to purchase a medical fridge and you’ll need to hire some very skilled and knowledgeable staff members in order to handle the equipment and products that you might be dealing with. This can be incredibly difficult if you’re just starting out as a startup in the industry and have no prior contacts that can help you out.
However, if you’re well-established in the industry already (perhaps you’re a well-known influencer or have worked in the industry before) then you’ll have a much easier time when it comes to operating a niche business. If you know influencers that actively engage your audience then it’s even better because it means that you’ll be able to spread your influence and market using word of mouth to grow your brand.
But even if you don’t have the right contacts and haven’t networked at all, it doesn’t mean that it’s impossible to make it big. For instance, if you’re able to establish some good working relationships with suppliers, other businesses and the community that your audience comes from, then you can use your connections to slowly build influence with the help of a social media manager. Any small business can go viral, but it’s sustaining that popularity and establishing a core audience that’s the hard part.
Alternatively, you could always call in the experts. There’s always the option of relying on consultants and specialists to help you grow your brand and connect you with suppliers, manufacturers and other third-party services that would be paramount to your business operation. There are plenty of ways to carve your own niche or take part in another specialized market, but it does require a lot of research, dedication and passion in order to make it work. If you don’t have the right contacts or no path to root yourself into relevant communities, you’re going to have a really tough time making it far.
SOME FINAL WORDS
A niche business is something that you should strive to achieve if you’re incredibly passionate about a specific subject. This is because you’re unlikely going to make it big due to the smaller audience and you’re going to have a hard time convincing people to purchase your products. As a result, you’ll end up with smaller profit margins and less recognition than if you were to pour all of that effort and those resources into a more general business idea.
However, what you get in return is something that is far more fulfilling and interesting. You’re less likely to get burned out working on something you don’t feel passionate about and you can inject your own personality and expertise into your business, making you feel far more accomplished when you do experience success. Collaboration.