By Charles Gaudet, founder, PredictableProfits.com.
It’s an idea that I talk about often and one that can have a huge impact on the success of a business:
Getting rich in your niche.
Rather than trying to appeal to the masses, when you narrowly focus your business to appeal to a certain segment, you benefit in a number of ways: premium prices, lower costs to acquire customers, and the opportunity to become the go-to company in your niche. Businesses that understand the power of specialization are thriving.
Below are five companies that are getting rich in their niche:
Businesses have many different options when it comes to accounting software. MYOB, Quickbooks, Freshbooks and Sage are all successful companies in that market. It would seem difficult to stand out among all this competition.
But Blackbaud has achieved just that with an average revenue growth rate exceeding 15% over the last 10 years. They do it by focusing on one group of customers with unique needs: Nonprofit organizations.
Blackbaud produces accounting and other software solutions for NPOs. The nonprofits’ needs are not met by standard accounting software.
There is no shortage of online clothes retailers. You can buy at Amazon, Zappos, or the Gap.
But Ties.com has achieved similar success by focusing on only a single item of clothing.
Specializing in ties has allowed them to provide the largest selection of neckwear on the planet. There may be a lot of places you can buy clothes online. But, if you are looking for a unique tie, Ties.com has become the dominant online market leader.
It maybe a little strange to think of tech giant Apple as an example of a company that specializes. After all, at one point it was the world’s most valuable company. But Apple actually has a surprisingly small share of some of the markets it operates in compared to its competitors.