Small Business Is All About Niches

Being successful in a small business hinges upon finding the right niche.

If a large corporation or some other small business does the same thing that you do, why would anyone come to you? The reason people come to your business is because you provide something better, in some way, than someone else.

In some cases, it could be as simple as having the right location. If you own a small hamburger stand, maybe people come to you because you are the closest place to eat. But if MacDonald's is right next door, then your hamburgers have got to taste better or be healthier or cheaper than MacDonald's' product; otherwise, you will soon be out of business.

When I first started as a Software Consultant in 1981, it was common knowledge that the thing to do was make one's business look as large as possible. This involved designing and printing business cards and matching letterhead with envelopes, and so on. Everybody knew this was the thing to do, so this is what we did. I don't think I landed a single contract based on the "business image" I created (or tried to create) in this way.

Regardless, I soon has as much business as I could handle just from word-of-mouth contacts. In those days, it was enough just to know how to program. Writing software was a rare skill and lots of people needed programming done. At that time, my niche was simply that could program computers. There was very little competition and it was easy to get a good rate.

Long story short... in 2009, it's not like that any more.

To survive at all as an independent consultant today, you not only need to deliver very good value almost immediately, but you need to be able to convince a prospect that you can do it, make them into a customer and then deliver good products consistently.

I seem to be able to do this within my niche, which is helping businesses with software projects that quickly and economically expand and improve their products or services.

I have often worked alongside larger consulting firms, recruiting firm consultants and employee programmers. There were certainly times when I felt threatened or challenged by any of these. But in the end, when the project was over, I have nearly always performed very well within my niche.

It is extremely important to know what your niche is. Otherwise, you won't know where to look for work, or know when you have found some. This doesn't mean that your niche can't change, but it's not likely to happen overnight.

It is no longer possible to be good at everything in this field. The 80's are over! Find out what you are good at and do that!