There are so many good reasons why small businesses should focus their offering on a clearly defined niche. One of the most compelling is that niche strategy not only helps you attract more clients like a magnet, but it does so more profitably, boosting your profits and putting more dollars in your pocket!
We have talked about the benefits of creating a niche for yourself in previous blog posts (3 Powerful Reasons to Get Over Your Niche Phobia). Many small business owners are open to it in theory, but resistent to it in practice. At Provendus Group we believe to our bones that niche marketing is the path to delivering a superior product or service to your market and greater profitability for you.
2015 is approaching rapidly! Every year, I use the last month to do strategic planning in preparation for the following year. Year-end is a great time to reflect on the year’s WINS and losses, along with all there is to be learned. Then, plan the year ahead.
I am a convert. “Profit First: A Simple System to Transform Any Business From A Cash-Eating Monster to a Money-Making Machine” will be here in less than a week, and for small business owners all over the world, not a moment too soon. I have had the privilege of reading an advance copy of this third book from author (and Provendus CEO) Mike Michalowicz, and the following is a summary of what I love about it.
While I have co-founded, built and sold two multi-million dollar technology service firms, I admit they were never truly profitable. Every increase in revenue seemed to be matched with an even greater increase in expenses. Every day I checked (and still do) my bank balances. As the balances would climb and fall, so would my confidence and my spending. I lavishly incurred new, unnecessary expenses when my bank account was fat. I panicked when it was thin.
Ever had a customer who drove you crazy? You may want to fire that customer. Yes, you read that right. Sometimes, you are better off letting a customer go, rather than dealing with on-going complaints.
The key to growing your profits is to bring in more revenues, right? Not necessarily. While most business owners focus on growing the sales and revenue side of their business, they often miss key issues that are impacting their profitability.