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Put simply, there aren’t an infinite number of niches, and usually, your business will be joining an extraordinarily crowded market. That doesn’t mean you have to give up. But when you make yourself visible, the competition in the area becomes more manageable and you can focus on growing rather than just defending your space from new entrants. You could also try looking for ways to stand out among other businesses in your sector and carve your own niche in this highly competitive environment.
In this article I’ll cover three different methods (all backed by research) that were used by many well-known entrepreneurs in their respective sectors. Each method requires time and effort, but when executed properly, can be very effective if used correctly, and it may even become a source of growth. Ultimately what matters most is how each strategy makes sense to you.
A Brief Background On The 3 Strategies Under Consideration Today
It is possible to use only one or two strategies to stand out in such a saturated landscape. Of course there are plenty of strategies you can fall back on if things get tough. However, sometimes having several options is actually better. Here are three popular ones. (For those not familiar with these terms, let me explain.) One stands out, while others compete with each other, resulting in little value in the long run. Let’s look at some examples.
Look For Opportunities And Grow From Them
One obvious place to start is from where everyone else is already hanging out. There’s no reason why your business shouldn’t be right next door. It doesn’t matter whether they sell something similar. If you stand out through being unique, then it’s definitely worth doing some marketing yourself. Get involved and show people that your product/service is worth paying for. This tactic sounds pretty simple, which makes it easy to overlook, however, there is significant value to gain from it (even without any sort of advertising spend).
The second strategy works best for those who want to maintain focus and stay as competitive as possible. Again, you might not need to advertise to achieve much success, but if your products/services are good enough, one word of mouth recommendation should suffice. It’s also relatively quick to implement and often produces results. These types of tactics are great for newcomers looking to join existing markets and grow in the face of intense competition. They tend to be less expensive than trying to find another niche in a completely different field.
Competition
A third alternative uses methods similar to that of first two strategies, except that instead of focusing on building interest in your brand and company, the priority is on attracting attention from competitors. Often times companies will open a dialogue with potential partners so they can see past successes and gauge if someone’s strategy is working for them. Then, once it’s clear that there is a possibility to collaborate, the offer is made to work together. With the proper amount of mutual respect, cooperation and communication, some mutually beneficial relationship emerges.
This isn’t exactly cheap – and it’s not free – but the payoff is substantial. Even relatively small investments can lead to substantial gains in future opportunities or increased profits. When executed effectively, this can be a winning proposition both inside and outside your industry.
A Final Thought
Every single competitor has different strengths and weaknesses, and each has its target markets. Finding a way to take advantage of these differences and capitalize on the opportunity to do so is critical to profitability and growth. No matter how you choose to approach the topic, you may need to adjust your approach over time, depending on changing circumstances. After all, no strategy works forever and every now and again you might need to pivot depending on new data or customer feedback, but there are certain principles we’re always wise to keep in mind. So, here are my thoughts on strategies one and two discussed above. Keep in mind, all approaches can fail. Always examine your risk tolerance!