How to survive in a niche market

It is spring, which reminds me of an important lesson of nature. We reap what we sow. This is most evident in the agribusiness community. AG businesses evaluate what they will grow in order to produce the best return on their resources.

To do this they listen carefully to the market and make decisions about the products that they will grow based on their resources and core competencies.

This is a universal business principle to consider. In generic business terms I like to think of the principle as defining the niche that a business is established to serve and filling the niche. More importantly, the question is — what is driving the niche?

The business environment is constantly changing and thus our niche must be re-evaluated often in order to achieve the best results.

What has changed in your business environment? What has changed in your customers’ environment? Have the customers’ needs changed?

You know your customers better than anyone. If you are not seeing the results that you need for your business — it may be time to shift the niche focus. As they say “if you do the same thing and expect different results then this is frustratingly unlikely.”

There are several forces that will drive new niches and niche changes in the current business environment.

One of the most obvious changes to consider is the stimulus package. What opportunities will this deliver to your business — tax incentives, new markets, more credit, and green product options?

Also, look for the indirect results from these stimulus programs. For example, if there are energy efficient window replacement incentives then there may be window treatments that need to be replaced. The room may then need to be painted. And, this of course means that the deck outside may need to be updated, which means that the landscaping should be looked at. Who wants an older car parked next to new landscaping. New hybrid cars should of course be parked next to the new greenery. What better to be in the new hybrid than a new set of golf clubs?

Once you have the new clubs it will be important to enjoy them on the greens (I know, being on the green is optimistic) at the Country Club of Culpeper. This means that you will need to be outfitted at one of the local clothiers for such outings, which brings me back to the windows — after a day on the course it will be important to stop by one of the local merchants for your favorite beverage and specialty cheese, to enjoy next to your new windows on your new deck, amidst your new landscaping, thinking of the savings from the windows and the new hybrid vehicle. It is very stimulating just thinking of it.

Where can you find out more about the stimulus options available to your business?

There are government websites that offer a range of information for the stimulus opportunities.

In addition, the Culpeper Chamber of Commerce is working with the Small Business Administration to develop a local workshop for small businesses to learn firsthand what some of these options may be and how to put them to work.

We are planning to have this in mid-May. Keep tuned into the CulpeperChamber.com for more information.