DEFINING A MARKET NICHE

Management and operational systems are a vital part of growing a business. The important thing to realize is that everything in a business starts with the identification of a market niche. Let me expand on the difference between a market and a market niche.

A market is made of present and potential buyers of your goods and services that your business will be providing. A market niche is a place within a market where a firm can potentially develop a sustainable competitive advantage in providing goods and or services to satisfy customer needs.

I believe that this first step in the business process is critical. Too many small business owners start with a product or service and then look for a market place that can use them. Looking for an unserved market or a market in which there is very little competition is a great place to start.

The next step is to develop the products and services that will satisfy the needs of that unserved market. This involves understanding what their needs are, how they buy, and what they perceive to be value in a product or service.

Next, look to identify the resources necessary to fund the development and marketing of these needed products and or services.

With this base, the development of operational systems for the day to day operations are implemented. This applies to all businesses, regardless of size. Good operational systems start at the inception of a planning process for future growth.

Management systems will develop as the firm grows, provided the other 4 parts of the growth pyramid are in place.

Each of these five steps are part of a proper organizational development process and each requires time and careful planning for implementation.

“He who fails to plan is planning to fail.”  Winston Churchill