Big fish, small pond

Susan A. FriedmannSusan A. Friedmann, the author of “Riches in Niches: How to Make it Big in a Small Market,” says small business owners need to find their market niche to find success. This includes everything from selecting the right name for your business to cultivating a productive relationship with the media so that your small company can become a big player in the market.

What is a business or service niche that small business owners often overlook?
Overlooked niches are found in the corners of the market no one thinks about – or no one has thought to think about. Finding these niches is both an art and a science.

We’ll cover the science section first: landscape professionals who want to locate niche markets in their region must have a thorough understanding of the marketplace: Who the customers are and who currently handles their landscaping needs.

The art side comes from applying a different perspective to your marketplace insights. Consider your market from a number of directions: Where are the customers who have special, unmet landscape needs? Shed all assumptions you may have about the way this work has to be done and brainstorm a list of opportunities.  For example, communities in transition where residents who used to do their own landscaping are now ‘aging out’ and would prefer to utilize your services? Check the demographic data and regional business surveys to help identify some possible niches.

Small markets often mean lots of competition. What simple and cost-effective ways can a business owner distinguish himself or his services?
There are a number of simple, cost-effective ways landscape professionals can differentiate themselves from the competition. Creating a highly visible public profile as the landscaping expert is the most efficient, effective way to do this. The public has demonstrated time and time again that they want the best service providers to meet their needs, and landscaping is no exception.

In my book, I outline seven strategies that can help you to achieve expert status with minimal out of pocket expense.
One of the best ways to generate new business in the green industry is word-of-mouth referrals. How can a business owner get his or her clients talking about their business and services?

There are two ways to generate positive word of mouth about your business. The first, of course, is to consistently do such a superlative job that your customers can’t help but talk about you.

The second, and faster route, is to regularly position yourself to be talked about. Establishing a presence in the public eye is best accomplished by savvy use of the media – regular appearances in the newspaper, on the local TV news show and in appropriate online forums, can create public awareness of your business. It’s important to note that we’re talking about editorial coverage here – interviews, articles, columns and commentary – rather than any advertising efforts. This will get the public talking – and more importantly, motivate them to seek out your services for their homes or businesses as they view you as the “expert.”
 
How does a business owner train his sales force to think “riches in niches?”
Training your sales force to recognize niches is a three-part process. The first step is to familiarize your team with the niche concept, and give them the tools to recognize potential niches. The second step is to give your team the freedom and flexibility to devote a portion of their time and energy to exploring sales avenues outside the norm. This may require encouragement, especially since sales professionals tend to be cautious about moving beyond familiar techniques and strategies. Thirdly, reinforce positive results by rewarding those sales professionals who identify and secure niche market contracts for your business.

Incentives will keep your team motivated and demonstrate, in a concrete fashion, the value of the new business.

If you find a niche, do you stop looking for new business niches?
The search for niches is the search for opportunity; you always want to be open to the possibilities.
Businesses go through cycles of growth. There will be times when you’ll be eager to find new business, and actively seek out niches, and others where you’ll do everything you can do to keep up with the business you have.
However, you want to always keep your eyes open to new niches. It’s a good way to ensure that when you’re ready to grow, you’ll know where the best opportunities are.

Lastly, it doesn’t take long for your competitors to catch on to the niche you’ve found and begin to copy your business strategy. How do you take what you’ve started to the next level and stay ahead of the competition?

They say that imitation is the most sincere form of flattery – and it’s certainly the most prevalent form, at least in the business world. Don’t be surprised if other companies follow your lead into niche markets. The key to success in this case – especially when you’re up against competitors who underbid you and attempt to lure customers away on a price basis – is to hold the line and focus on maintaining your “expert identity.” This is the critical differentiation factor that attracted your customers in the first place, and it will allow you to retain them. Low-ball competitors seldom have the staying power needed to outlast you – especially if they take your jobs as a loss leader.

The author is editor of Golf Course Industry and Snow Magazine. He can be reached at  mzawacki@gie.net.